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INSTITUTE  OF  PACIFIC  RELATIONS 


HEARINGS 

BEFORE  THE 

SUBCOMMITTEE  TO  INVESTIGATE  THE  ADMINISTKATION 

OF  THE  INTEENAL  SECUEITY  ACT  AND  OTHEE 

INTEENAL  SECUEITY  LAWS 

OF  THE 

COMMITTEE  ON  THE  JUDICIARY 

UNITED  STATES  SENATE 

EIGHTY-SECOND  CONGKESS 

FIRST  SESSION 

ON 

THE  INSTITUTE  OF  PACIFIC  RELATIONS 


PART  5 

OCTOBER  12,  17,  18,  AND  19,  1951 


Printed  for  the  use  of  the  Committee  on  the  Judiciary 


■atiwci*-*-- 


:.<^^      Vv:t 


INSTITUTE  OF  PACIFIC  RELATIONS 


HEARINGS 

BEFORE  TUK 

SUBCOMMITTEE  TO  INYESTIGATE  THE  ADMINISTRATION 

OF  THE  INTERNAL  SECURITY  ACT  AND  OTHER 

INTERNAL  SECURITY  LAWS 

OF  THE 

COMMITTEE  ON  THE  JUDICIARY 

UNITED  STATES  SENATE 

EIGHTY-SECOND  CONGRESS 

FIRST  SESSION 

ON 

THE  INSTITUTE  OF  PACIFIC  RELATIONS 


PART  5 

OCTOBER  12,  17,  18,  AND  19,  1951 


Printed  for  the  use  of  the  Committee  on  the  Judiciary 


UNITED  STATES 
GOVERNMENT  PRINTING  OFFICE 
22848  "  WASHINGTvJN   :   1951 


COMMITTEE  ON  THE  JUDICIARY 

PAT  McCARRAN,  Nevada,  Chairman 

HARLBY  M.  KILGORE,  West  Virginia  ALEXANDER  WILEY,  Wisconsin 

JAMES  O.  EASTLAND,  Mississippi  WILLIAM  LANGER,  North  Daltota 

WARREN  G.  MAGNUSON,  Wasliington  HOMER  FERGUSON,  Michigan 

HERBERT  R.  O'CONOR,  Maryland  WILLIAM  B.  JENNER,  Indiana 

ESTES  KEFAUVER,  Tennessee  ARTHUR  V.  WATKINS,  Utah 

WILLIS  SMITH,  North  Carolina  ROBERT  C.  HENDRICKSON,  New  Jersey 

J.  G.  SouKWiNE,  Counsel 


Subcommittee  To  Investigate  the  Administration  of  the  Inteenai-  Secueitt 
Act  and  Other  Internal  Secukity  Laws 

PAT  MCCARRAN,  Nevada,  Chairman 

JAMES  O.  EASTLAND,  Mississippi  HOMER  FERGUSON,  Michigan 

HERBERT  R.  OCONOR,  Maryland  WILLIAM  E.  JENNER,  Indiana 

WILLIS  SMITH,  North  Carolina  ARTHUR  V.  WATKINS,  Utah 


Subcommittee  Investigating  the  Institute  of  Pacific  Relations 

JAMES  O.  EASTLAND,  Mississippi,  Chairman 
PAT  MCCARRAN,  Nevada  HOMER  FERGUSON,  Michigan 

Robert  Morris,  Special  Counsel 
Benjamin  Mandel,  Director  of  Research 

n 


C  O  N  T  E  N  1  S 


Testimony  of—  Page 

Alsop,  Joseph 1 403 

Colegrove,  Kenneth  C 1277 

Cooke,  Charles  Maynard,  Admiral  USN  (retired) 1491 

Stassen,  Harold  E 1252 

Wallace,  Henry  A - 1297 

Appendix — Transcript  of  Round  Table   Discussion  on  American    Policy 

toward  China  held  in  Department  of  State,  October  6,  7,  and  8,  1949 1551 

m 


INSTITUTE  OF  PACIFIC  EELATIONS 


•  FRIDAY,  OCTOBER  12,  1951 

United  States  Senate, 
Subcommittee  To  Investigate  the  Administration 
OF  the  Internal  Security  Act  and  Other  Internal 

Security  Laws,  of  the  Committee  on  the  Judiciary, 

Washington^  D.  G. 

The  subcommittee  met  at  10 :  30  a.  m.,  pursuant  to  call,  in  room  424, 
Senate  Office  Building,  Hon.  Pat  McCarran  (chairman)  presiding.. 

Present:  Senators  McCarran,  Smith,  and  Ferguson. 

Also  present :  Senator  Millikin ;  J.  G.  Sourwine,  committee  counsel ; 
Robert  Morris,  subcommittee  counsel;  Benjamin  Mandel,  director  of 
research ;  and  Prof.  Kenneth  Colegrove,  Northwestern  University. 

The  Chairman.  The  committee  will  come  to  order. 

Mr.  Morris,  you  may  proceed. 

Mr.  Morris.  Mr.  Chairman,  I  believe  Governor  Stassen  has  been 
sworn. 

The  Chairman.  Governor  Stassen  has  been  sworn,  not  once,  but 
twice  to  my  certain  knowledge. 

Mr.  Morris.  And  pursuant  to  direction  we  had  Governor  Stassen 
recalled  in  order  that  he  might  make  an  analysis  of  the  transcript 
which  was  released  yesterday  by  the  State  Department  and  make  com- 
parisons between  the  transcript  and  his  testimony,  and  for  that  reason 
he  has  been  called  here  this  morning,  to  show  whether  or  not  the  tran- 
script justifies  his  testimony. 

The  Chairman.  Governor,  you  may  proceed. 

Mr.  Morris.  Mr.  Chairman,  this- letter  that  you  prepared  is  now 
ready,  and  it  bears  on  this  matter,  so  I  think  it  would  be  just  as  well  to 
read  it  at  the  outset.    [Reading :] 

October  12,  1951. 
Hon.  Dean  Acheson, 

Secretary  of  State,  Washington,  D.  C. 

My  Dear  Mb.  Secretary  :  Thank  you  for  making  available  to  the  Internal  Secu- 
rity Subcommittee  a  transcript  of  the  October  6,  7,  and  8,  1949,  round-table  con- 
ference. 

I  notice  that  the  list  of  questions  submitted  to  the  conferees  does  not  appear 
in  the  transcript.  Inasmuch  as  this  is  an  integral  part  of  the  record,  will  you 
make  this  available? 

The  Internal  Security  Subcommittee  vpould  also  like  to  have  a  copy  of  the 
memoranda  submitted  by  individuals,  together  with  a  list  of  those  submitting 
memoranda,  and  a  list  of  those  invited  to  the  conference. 

Your  kind  cooperation  will  be  appreciated. 
Sincerely, 

Pat  McCarran,  Chairman. 

The  Chairman.  Very  well. 

Mr.  Morris.  Governor  Stassen,  have  you  had  an  opportunity  to 
study  the  transcript  made  available  to  you? 

1251 


1252  INSTITUTE   OF   PACIFIC   RELATIONS 

TESTIMONY  OF  HAEOLD  E.  STASSEN,  PRESIDENT,  UNIVERSITY 

OF  PENNSYLVANIA 

Mr.  Stassen.  I  had  a  limited  opportunity  to  study  it  last  night,  Mr. 
Morris  and  Senator,  and  we  have  gone  through  it  quite  thoroughly 
within  the  limitations  of  time. 

Mr.  Morris.  Governor  Stassen,  will  you  point  out  to  us  that  portion 
of  the  transcript  which  bears  out  the  testimony  that  you  have  given 
before  this  subcommittee?  *  , 

Mr.  Stassen.  Senator  and  gentlemen  of  the  committee,  I  would  like 
to  state  first  that  I  appear  in  response  to  your  request  that  I  return 
for  further  examination  by  you  upon  the  transcript  which  is  now  re- 
leased of  the  October  6,  7,  and  8, 1949,  conference  at  the  State  Depart- 
ment. 

I  wish  to  commend  you,  if  I  may,  sir,  on  your  successful  effort  in 
getting  this  to  be  a  public  record,  and  I  would  respectfully  suggest  for 
your  consideration  that  it  ought  at  some  time  to  become  printed  so  that 
it  would  be  available  in  the  academic  circles  in  the  country  as  a  mini- 
mum. 

I  say  to  you  again  that  I  will  endeavor  to  answer  your  questions 
fairly  and  objectively  from  the  facts  as  I  know  them.  I  will  refer 
frequently  to  the  transcript  this  morning,  and  as  a  witness  I  will  not 
assess  motives  to  anyone.  I  am  not  here  as  an  associate  of  anyone 
else,  nor  for  the  purpose  of  attacking  anyone  else.  I  responded  to 
your  subpena,  and  I  wull  answer  fully  and  carefully  because  of  the 
great  importance  of  the  subject  under  inquiry. 

You  will  recall  that  I  testified  on  October  1,  1951,  that  the  prevail- 
ing group  in  the  conference  was  led  in  the  discussions  by  Mr.  Owen 
Lattimore  and  Mr.  Lawrence  Eosinger.  You  will  also  recall  that  the 
State  Department  on  the  next  morning  issued  a  press  release  which 
denied  my  testimony  and  that  Mr.  Lattimore  and  Mr.  Rosinger  also 
issued  press  releases  which  denied  my  testimony ;  and  you  will  also  be 
aware  that  this  morning  the  papers  carry  a  State  Department  press 
release  which  says  that  I  am  "factually  incorrect." 

Therefore,  I  will  proceed  to  carefully  analyze  the  transcript  in 
relation  to  my  previous  testimony,  but  more  important  than  that,  also 
in  relation  to  the  basic  issues  which  were  then  and  are  now  before 
the  country,  because  I  should  like  to  state,  sir,  that  my  greatest  inter- 
est in  this  matter  is  because  of  my  extreme  concern  that  I  can  see  now 
in  its  early  stages  a  similar  w^orld-wide  pattern  of  action  which  would 
have  as  its  consequence  the  undermining  of  the  Congress  Party  of 
India  and  of  Premier  Nehru  and  the  turning  of  India  to  the  domi- 
nation of  the  Communist  Party  of  India,  and  all  over  the  world  men 
who  participated  in  the  pattern  of  action  with  relation  to  China  are 
now  shifting  to  India,  so  that  is  the  background  from  which  we  now 
proceed,  with  your  permission,  Senator,  in  this  very  careful  analysis 
of  this  paper  on  our  China  policy. 

The  transcript,  now  at  long  last  released,  clearly  proves  the  correct- 
ness of  my  memory  of  the  conference  and  the  truth  of  my  description 
of  it.  I  testified  as  this  prevailing  group,  and  I  might  just  make  this 
first  comment,  not  that  this  in  itself  is  important  proof,  but  it  is  a 
detail. 

Tlirough  this  transcript  you  will  find,  sir,  that  Mr,  Owen  Lattimore, 
exclusive  of  questions  during  the  briefing  by  the  military,  spoke  19 


INSTITUTE    OF   PACIFIC   RELATIONS  1253 

times,  of  which  8  times  were  substantial,  and  that  Mr.  Lawrence  Ros- 
inger  spoke  11  times,  of  which  5  times  were  substantial,  and  you  will 
not  find  any  twin  participation  in  major  degree  similar  to  that  on  the 
part  of  any  other  of  the  30  or  so  participants. 

That,  of  course,  is  just  broad  background  for  the  analysis  that  I 
now  present. 

Mr.  Morris.  And  that  shows,  Governor  Stassen,  that  they  led  the 
conference;  is  that  right,  sir? 

Mr.  Stassen.  That  is  just  one  factor  to  consider,  of  course.  The 
volubility  alone  would  not  be  proof  of  leading  a  discussion,  as  we  all 
know,  but  it  is  one  factor.  It  does,  though,  bear  out  the  testimony 
that  I  gave  earlier  on  your  examination  at  a  time  when  I  did  not  have 
the  transcript.  You  asked  how  frequently  did  Lattimore  speak  while 
I  was  present,  and  I  said,  "I  would  say  eight  or  nine  times  and  Rosinger 
five  or  six  times,"  so  the  transcript  now  released  bears  out  that  testi- 
mony of  mine  and  the  testimony  of  Dr.  Colegrove,  which  was  given 
before  I  appeared  on  the  scene,  before  you  subpenaed  me. 

Mr.  Morris.-  And  you  were  present  2  of  the  3  days,  were  you  not? 

Mr.  Stassen.  That  is  right. 

I  testified  before  you,  sir,  on  October  1  that  this  prevailing  group 
recommended  that  the  United  States  should  recognize  the  Communist 
People's  Republic  Government  of  China  under  the  leadership  of  Mao 
Tse-tung  at  an  early  date.  The  key  session  of  the  conference  on  this 
subject  was  on  the  third  day,  October  8, 1949,  beginning  at  9  a.  m. 

The  transcript  has  an  ink  number,  No.  15-E — I  don't  know  what 
that  means — but  in  any  event  it  is  the  transcript  under  date  of  October 
8, 1949,  beginning  at  9  a.  m,,  and  in  this  transcript,  if  you  turn  beyond 
where  General  Marshall  was  speaking,  you  come  down  to  the  point 
at  w^hich  the  most  important  section  of  the  transcript  on  this  par- 
ticular issue  and  on  some  other  issues  is  found. 

The  Chairman.  That  is  on  what  page  of  the  transcript,  Governor? 

Mr.  Stassen.  We  now  turn  to  page  31  of  this  transcript  for  the 
8th  of  October,  beginning  at  9  a.  m.,  page  31  on  the  right-hand  side, 
B-1  in  the  center.  It  has  a  double  label.  The  chairman  who  is  speak- 
ing here  is  Dr.  Jessup,  so  on  top  of  the  page  where  it  says  "Chairman" 
that  is  Dr.  Jessup,  and  you  will  see  that  he  says  this : 

Gentlemen,  in  the  time  whicli  is  left  to  us,  with  your  permission  what  I  would 
like  to  do  would  be  to  see  if  we  can  get  your  views  rather  specifically  on  a  number 
of  issues.     *     *     * 

And  then  you  run  down  to  the  beginning  of  the  second  paragraph 
and  he  said : 

I  would  like  to  suggest  that  we  might  have  a  few  minutes  taking  up  the  question 
of  the  recognition  of  the  Communist  Government  in  China.     *     *     * 

So  that  this  discussion  which  follows  arose  as  the  direct  result  of  the 
request  of  Dr.  Jessup  that  we  focus  on  that  specific  issue.  You  will 
recall  that  many  releases  and  statements  have  indicated  that  the  dis- 
cussion of  recognition  was  a  sort  of  incidental  thing  while  30  men  were 
discussing  many  problems. 

This  then  definitely  pins  that  this  discussion  came  about  as  the  re- 
quest of  Dr.  Jessup  focusing  the  whole  group  specifically  on  this 
problem,  and  I  think  this  record  should  also  show  that  in  the  testi- 
mony before  the  Sparkman  committee  Dr.  Jessup  testified  that  the 
United  States  had  not  considered  or  contemplated — he  used  both 
words — the  recognition  of  Communist  China. 


1254  INSTITUTE    OF   PACIFIC   RELATIONS 

Now,  then,  the  key  discussion  of  this  follows  in  these  pages  and  for 
any  real  analysis  everything  from  this  page  31  on  through  should  be 
read,  but  I  will  now  point  to  high  lights  in  order  to  focus  on  what  is 
involved. 

On  page  40  Dr.  Nathaniel  Peffer  on  the  bottom  of  the  page  begins 
some  of  the  most  significant  statements.  You  will  see  that  Mr.  Nath- 
aniel Peffer  says  this : 

I  would  also  make  it  a  matter  of  timing  and  I  would  wait.  I  would  wait  4 
weeks  or  5  or  6  weeks     *     *     *. 

Then  he  goes  on  to  say : 

I  don't  know  when  the  Communists  will  get  to  Canton,  but  I  would  guess  not 
over  6  or  7  weeks.  The  only  other  Chinese  regime  will  be  in  Formosa,  which 
is,  at  least  technically,  not  Chinese  territory.    It  is  still  Japanese. 

Then  he  goes  on. 

On  page  43  you  find  an  important  thing.  Now,  some  of  those  who 
were  arguing  against  recognition  as  they  saw  the  prevailing  opinion 
developing  the  other  way  urged  that  furthermore,  beyond  everything 
else,  there  was  a  strong  opinion  in  the  country  and  in  Congress  against 
the  recognition. 

This  was  not  the  sole  basis  of  opposition  to  the  recognition,  but  it 
was  one  of  the  arguments  advanced,  so  here  you  see  Mr.  Peffer  taking 
up  that  argument.  He  says  on  page  43,  the  second  paragraph,  page 
B-13,  second  paragraph : 

If  this  country — the  most  powerful  in  the  world  at  the  most  dangerous  time 
in  the  world — is  at  a  stage  in  which  the  Government  is  hog-tied  against  its  bet- 
ter judgment  because  some  people  are  going  to  blow  up,  then  God  alone  help  the 
Republic.    That  is  all. 

And  then  the  stenographer  records  applause  to  that.  In  other 
words,  this  was  a  sharp  rejoinder  to  those  in  the  minority  who  had 
pleaded  that  there  should  not  be  recognition,  and  the  stenographer 
records  applause,  and  applause  was  of  course  rare — in  fact,  almost 
unheard  of — in  this  kind  of  a  conference  with  30  men  sitting  around 
the  table. 

Senator  Ferguson.  Do  you  know  of  any  other  occasions  where  there 
was  an  applause? 

Mr.  Stassen".  There  was  one  time.  There  was  a  comment  of  "Hear, 
hear,"  or  something  of  a  similar  vein  from  the  floor. 

Senator  Ferguson.  But  no  applause  like  this  ? 

Mr.  Stassen.  I  think  there  was  an  applause  when  General  Mar- 
shall concluded  his  report;  instances  of  that  kind.  I  do  not  know 
of  any  other  instance  than  this  one  and  the  "Hear,  hear",  when  a  sub- 
stantive statement  of  policy  was  greeted  with  applause  as  distin- 
guished from  greeting  some  individual  with  applause  or  some  courtesy 
with  applause. 

If  I  may  just  conclude  that,  on  page  42  you  find  that  Mr.  Peffer  says : 

Let  us  say  that  there  is  an  American  Congress — and  I  don't  know  that  they 
are  synonymous — and  suppose  it  is  true  the  State  of  Oregon  blows  up.  Well, 
it  will  settle    *     *     *. 

And  on  page  43,  the  end  of  the  first  paragraph,  you  will  find  him 
saying  this : 

There  is  no  real  argument  against  real  recognition  except  that  a  lot  of  people 
are  going  to  blow  up. 


INSTITUTE    OF   PACIFIC   RELATIONS  1255 

It  is  after  he  has  said  these  things  and  concludes  that  there  is  the 
applause  from  this  conference. 

Senator  Smith.  I  want  to  ask  you  about  an  item  on  page  41,  the 
beginning  of  the  paragraph  on  that  page : 

Another  matter.  Tell  me,  is  not  the  burden  o'f  proving  on  those  who  don't  want 
to  recognize?  The  Communists  are  there.  They  are  going  to  take  20,  30,  40 
years.    Who  knows?    What  do  you  lose  by  recognizing? 

1  was  wondering  if  that  was  part  of  the  statement  that  got  the 

applause. 

Mr.  Stassen.  Those  two  and  a  half  pages  was  his  statement,  and 
what  you  just  read  was  included,  which  winds  up  with  the  applause. 

If  I  may,  I  would  like  to  go-  on  to  page  48  where  Owen  Lattimore 
is  speaking,  and  he  opens  it  up  : 

Mr.  Chairman — 

they  are  addressing  Dr.  Jessup — 

I  think  I  am  definitely  encouraged  by  the  evident  trend  this  morning, 
which  shows  that  we  should  proceed  from  facts  rather  than  from  subjective 
attitudes.     *     *     * 

The  Chairman.  What  page  is  that  ? 
Mr.  Stassen.  Page  48,  C-1. 

The  Chairman.  Some  of  them  are  not  numbered  the  same. 
Mr.  Stassen.  It  says : 
Chairman.  Mr.  Lattimore. 
He  is  being  called  on,  and  his  first  sentence  is : 

Mr.  Chairman,  I  think  I  am  definitely  encouraged  by  the  evident  trend  this 
morning,  which  shows  that  we  should  proceed  from  facts  rather  than  from  sub- 
jective attitudes.  I  hope  the  Department  feels  its  hand  strengthened,  but 
if  we     *     *     *. 

And  so  on,  and  then  he  goes  on  with  his  argument. 

Mr.  Morris.  Does  he  argue  that  we  should  recognize  Communist 
China  at  that  point  ? 

Mr.  Stassen.  Clearly  in  the  context,  and  then  he  goes  beyond  that. 
I  might  say  the  State  Department  release  this  morning  admits  that 
Mr.  Lattimore  did  urge  recognition. 

Then  on  the  bottom  of  page  49,  about  eight  lines  up  from  the  bottom, 
he  says : 

Overhaste  in  recognizing  the  new  situation  might  indicate  panic     *     *     *. 

And  he  goes  on  and  discusses  that,  and  then  he  says : 

On  the  other  hand,  too  much  delay  might  have  a  deteriorating  effect  on  our 
prestige  in  Asia  that  in  the  long  run  would  be  more  damaging  to  us  because 
there  would  be  the  feeling  that  while  a  new  situation  has  developed  and  in  spite 
of  the  fact,  as  Mr.  Peffer  cogently  pointed  out — 

I  might  say  that  refers  directly  back  to  the  discussion  just  a  few  min- 
utes earlier  by  Mr.  Peffer  that  we  have  been  discussing — 

that  that  really  doesn't  alter  the  mechanics  of  how  we  handle  things  in  the 
United  Nations ;  for  instance,  the  veto  ratio  is  changed  but  the  veto  situation  is 
not  changed     *     *     *. 

In  other  words,  it  was  another  argument  against  that  of  those  op- 
posing recognition  had  made,  that  that  was  not  just  a  question  of  rec- 
ognizing the  country,  but  you  would  hand  to  that  Communist  govern- 
ment a  veto  in  the  United  Nations  as  one  of  the  major  nations  in  the 


1256  INSTITUTE    OF   PACIFIC   RELATIONS 

world,  that  that  was  a  serious  matter,  and  this  argument,  along  with 

the  others  in  here,  was — 

Well,  after  all,  Russia  had  one  veto  now.  What  if  you  did  give  the  Communists 
two  vetoes?  Two  vetoes  wouldn't  do  them  any  more  good  than  one  in  that  we 
still  had  one  veto — 

so  that  Mr.  Lattimore  directly  associates  himself  with  the  argument 

that  while  this  would  give  the  Communists  two  vetoes,  that,  as  he 

puts  it — 

that  doesn't  really  alter  the  mechanics  of  how  we  handle  things  in  the  United 
Nations ;  for  instance,  the  veto  ratio  is  changed — 

which  means  two  vetoes  for  the  Communists  instead  of  one — 

but  the  veto  situation  is  not  changed — 

because  they  could  still  veto  with  only  one  veto. 

That  is  trying  to  demolish  our  own  insistence  that  there  shouldnot 
be  prompt  recognition  because  it  would  be  very  upsetting  in  the  United 
Nations. 

Senator  Smith.  On  page  49,  and  you  read  a  part  of  it : 

Overhaste  in  recognizing  the  new  situation     *     *     *. 

That  meant  the  recognition  of  Communist  China?  Is  that  what 
that  meant? 

Mr.  Stassen.  That  is  right. 

Senator  Smith.  There  is  no  doubt  about  that? 

Mr.  Stassen.  As  I  say,  I  really  would  urge  that  any  of  yoii  gen- 
tlemen, any  editor  who  is  going  to  analyze  or  comment  on  this  as  a 
student,  ought  to  take  this  morning's  session,  and  from  the  time  Gen- 
eral Marshall  finishes  to  the  close  of  the  session,  and  read  every  line 
of  it. 

Senator  Smith.  Then  he  says  in  the  next  sentence : 

On  the  other  hand,  too  much  delay  might  have  a  deteriorating  effect  on  our 
prestige  in  Asia     *     *     *. 

That  means  too  much  delay  in  the  recognition ;  is  that  right  ? 

Mr.  Stassen.  That's  right. 

Mr.  MoRKis.  Governor  Stassen,  your  reference  to  the  veto  is  to  the 
fact  that  the  five  permanent  members  of  the  Security  Council  do  have 
the  right  to  veto  and  that  China  is  one  of  the  five  nations  with  that 
veto  power. 

Mr.  Stassen.  That  is  right.  You  see,  there  had  been  references  in 
the  discussion  to  the  old  recognition  policy  in  relationship  to  South 
American  countries,  and  so  forth,  and  some  of  us  presented  the  plea 
that  that  did  not  apply  when  you  were  considering  a  major  nation 
with  two  contesting  governments  and  with  the  matter  of  a  veto  seat. 

We  said  there  was  no  real  precedent  for  this ;  this  has  to  be  analyzed 
on  the  basis  of  the  current  world  situation  and  what  you  knew  about 
China. 

Senator  Ferguson.  You  felt  that  recognition  of  Communist  China 
by  the  United  States  was  in  effect  a  recognition  that  they  were  entitled 
to  the  seat  because  we  would  have  to  break  off  the  recognition  of  the 
Nationalist  Government,  which  would  give  them  no  place  in  the 
United  Nations  as  far  as  we  were  concerned  ? 

Mr.  Stassen.  I  not  only  felt  that.  Senator,  but  I  said  it  very  specifi- 
cally before  that  morning  session  was  over,  and  you  will  find  it  later 
in  the  transcript.     I  said  it  very  directly  on  that  point. 


INSTITUTE    OF   PACIFIC   RELATIONS  1257 

Senator  Ferguson.  Therefore  in  effect  you  had  two  recognitions. 
If  you  recognized  them  as  a  nation  and  as  a  government,  it  meant  that 
following  that  you  would  by  necessity  have  to  recognize  them  in  the 
United  Nations  and  they  would  become  part  of  the  Security  Council 
with  the  right  of  the  veto  ? 

Mr.  Stassen.  That  is  right. 

Then  following  through  on  page  54,  you  find  comments  by  Mr.  Wil- 
liam S.  Robertson,  and  he  associates  himself  with  those  who  are  recom- 
mending recognition,  and  then  on  page  55  he  reads  a  letter,  which  is  a 
significant  document.     Starting  before  that,  he  said : 

We  have  in  China,  as  our  chief  executive,  a  man  named  Paul  Hopliins,  who 
is  knovi^n,  I  think,  to  a  good  many  of  the  people  here.  I  think  while  his  chief 
interest,  of  course,  lies  in  us,  I  am  quite  sure  from  my  knowledge  of  him  that  he 
is  a  good,  loyal,  and  patriotic  American,  and  he  has  no  particular  reason  to  like 
the  Communists. 

If  I  may,  I  would  like  to  read  to  you,  confidentially,  from  a  letter  which  I 
got  from  him  under  date  of  September  21,  which  gives  something  of  his  expe- 
rience in  dealing  with  the  Communists  in  connection  with  our  own  business.  I 
thought  it  might  be  illuminating  if  that  sort  of  thing  might  be  put  in  the  record. 

After  talking  about  our  own  affairs,  he  says  : 

"The  authorities  are  all  significantly  honest,  hard-worliing  individuals  who 
live  on  the  barest  essentials  of  food  and  clothing.  They  practice  austerity  to 
the  point  of  not  using  electric  fans  or  elevators  in  the  buildings  which  they  occupy 
as  offices  or  residences.  In  my  opinion,  the  extreme  privation  of  these  officers 
will  have  serious  effect  upon  their  health,  particularly  those  with  tubercular 
tendencies.  I  have  found  them  all  intelligent,  very  frank  in  discussing  prob- 
lems and  most  of  them  with  a  good  sense  of  humor. 

"There  is  no  question  but  that  it  is  a  new  type  of  people  who,  if  not  subject 
to  outside  pressure,  will  ultimately  bring  great  progress  to  China. 

"To  my  mind,  the  pessimistic  future  stems  from  the  increasing  breach  which 
has  developed  between  China  and  America.  There  are  arguments  on  both  sides, 
but,  in  my  opinion,  the  passage  of  time  has  seemed  to  confuse  the  issue  and 
eliminate  realistic  thinking,  which  bodes  ill  for  everyone.  I  may  be  too  close 
to  the  picture  and  has  lost  perspective.  The  almost  daily  bombing  activity  of 
the  KMT— 

which  was  the  China  Nationalist  Force — 

"and  the  increased  miseries  caused  the  Chinese  people  by  those  activities  against 
nonmilitary  objectives  constantly  irritate  an  open  sore.  Grant  it  be  un-Anglo- 
Saxon  to  deny  an  ex-war  partner,  but  evidence  would  seem  adequate  that  that 
partner  has  for  several  years  served  its  people  so  ill  that  it  has  been  rejected 
by  its  own  people.  America  is  now  contributing  indirectly  to  the  miseries  of 
those  people.    Kecognition  should  be  withdrawn — 

that  is  recognition  from  the  China  Nationalists — 

"and  the  blockade  of  the  coast  broken."  I  thought  that  might  be  useful  to  the 
committee. 

Of  course,  reiterating  what  I  said  before,  I  do  not  know  the  motives 
of  the  man  who  wrote  the  letter.  I  do  not  know  whether  he  wrote  it 
while  he  was  himself  under  Communist  domination  in  a  Chinese  city, 
whether  he  was  then  mistaken  or  mistakenly  advised,  or  what. 

Mr.  Morris.  Would  that  not  appear  to  be  from  the  expressions  of 
Mr.  Rosinger  ?  At  the  very  end  there  it  says,  "Thank  you  very  much, 
Mr.  Rosinger." 

Mr.  Stassen.  No.  He  is  calling  Mr.  Rosinger  next.  The  Chair- 
man is  thanking  Mr.  Robertson  and  then  he  calls  on  Mr.  Rosinger. 
That  is  the  way  you  interpret  that. 

Mr.  SouRwiNE.  Governor  Stassen,  are  you  about  to  go  to  a  new 
point  ? 

Mr.  Stassen.  A  new  individual  on  the  same  point. 


J  258  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  SouRWiNE.  I  do  not  mean  to  interrupt  your  train  of  thought, 

and  I  had  a  question  I  would  like  to  ask  about  it. 

Would  it  interrupt  you  if  I  did  so  ? 

Mr.  Stassen.  No.  .  ,      . -, 

Mr.  SouRWiNE.  On  page  53  Mr.  Talbot  was  recognized  and  said : 

I  merely  wanted  to  ask  a  question  as  to  what  the  relations  may  be  between 
this  question  of  recognition  of  China,  the  Chinese  Communist  regime,  and  the 
Japanese  Peace  Treaty. 
And  the  Chairman  said : 

I  am  not  quite  sure  that  I  understand  your  point. 

Was  Mr.  Jessup  in  the  chair  at  that  time  ?    Mr.  Talbot  said : 

I  am  sorry.  I  was  wondering  whether  the  negotiation  of  a  Japanese  peace 
treaty  would  be  materially  affected  by  the  question  of  whether  or  not  we  recog- 
nize, before  negotiating  that  peace  treaty,  the  Communist  regime  in  China. 

And  the  Chairman  said : 

Could  we  hold  that  a  minute  until  I  go  through  my  list,  and  come  back  to  your 
question? 

And  then  he  recognized  Mr.  Herod.  Could  you  tell  me  whether 
he  did  come  back  to  Mr.  Talbot's  question  ? 

Mr.  Stassen.  He  did. 

Mr.  SouRwiNE.  When  you  come  to  that  point  will  you  comment 
on  this  ? 

Mr.  Stassen.  Yes,  I  will.  I  might  say,  as  is  indicated  right  here 
and  will  be  found  in  other  places,  Mr.  Talbot  was  one  of  those  who 
expressed  the  gravest  concern  about  the  recognition  recommendations. 
He  was  also  one  of  those  who  made  a  really  brilliant  presentation 
regarding  India  and  Nehru,  which  was  then  counterattacked  by 
others. 

Mr.  Morris.  Mr.  Chairman,  the  State  Department  has  just  sent 
down  a  list  of  questions  submitted  to  the  conferees  to  the  conference. 
They  just  arrived  this  minute. 

Mr.  Stassen.  I  might  say  I  have  a  copy  of  that  list  of  questions, 
too. 

On  page  57  we  come  to  the  comment  on  this  particular  session  by 
Mr.  Kosinger,  and  he  starts  up  on  the  middle  of  page  57 : 

I'd  like  to  associate  myself  with  the  view  frequently  expressed  around  this 
table  that  we  should  extend  recognition.  My  own  personal  feeling  is  that  the 
recognition  should  come  as  early  as  possible     *     *     * 

Then  he  goes  on  with  his  discussion. 

On  page  59  you  will  find  in  the  middle  of  the  page,  and  the  sentence 
starts  in  the  middle : 

I,  personally,  as  I  have  suggested,  would  be  in  favor  of  recognizing  at  the 
earliest  feasible  moment. 

And  then  he  continues  on  top  of  page  60  regarding  the  Isbrandtsen 
ships. 

The  Chairman.  I  think,  Governor  Stassen,  that  the  expression 
following  what  you  quoted  on  page  59  is  significant : 

I  think,  though,  that  in  terms  of  preparing  American  public  opinion  for 
recognition,  there  is  a  process  of  disentanglement  from  the  Chinese  Nationalists, 
which  can  be  carried  out  in  the  weeks  ahead,  and  I  think  to  the  extent  that  we 
disentangle  ourselves  from  the  Chinese  Nationalists,  we  lay  the  basis  for 
recognition. 


INSTITUTE    OF   PACIFIC   RELATIONS  1259 

.  Mr.  Stassen.  That  is  right. 

On  page  61  he  goes  into  the  matter  of  the  Isbrandtsen  ships  and 
down  about  eight  lines  you  will  find  him  saying  this — remember, 
these  Isbrandtsen  ships  were  taking  supplies,  including  military  sup- 
plies, to  the  Chinese  Communists  through  the  blockade  or  port  closure 
which  the  Chinese  Nationalists  were  then  enforcing — and  Mr.  Rosinger 
there  says : 

Had  action  been  taken — again  I  won't  try  to  define  it,  I  don't  know  the 
technical  details — but  had  action  been  taken  to  defend  the  right  of  these 
American  ships  to  trade  through  a  blockade,  which  is  not  a  blockade  but  tech- 
nically a  i)ort  closure,  a  port  closure  which  we  have  already  asserted  we  don't 
recognize  as  a  blockade,  had  action  been  taken  to  defend  the  right  of  these 
ships  to  go  through,  I  think  it  would  have  been  very  difficult  for  any  opponents 
of  the  process  of  moving  toward  recognition  to  say  "this  shall  not  be 
done,"     *     *     *. 

Then,  on  the  bottom  of  that  page  Dr.  Jessup  makes  a  comment. 
Right  at  the  bottom  he  said : 

Gentlemen,  I  hate  to  suggest  any  limitation  on  our  discussion  because  it  is 
extremely  valuable  and  I  think  this  morning  has  been  very  much  to  the  point 
and  extremely  useful,  but  we  do  want  to  cover  a  number  of  other  topics  before 
we  break  up.  I  would  suggest  that,  if  we  could  proceed  under  informal,  5-minute 
rule  and  make  our  remarks  as  concentrated  as  possible,  we  can  finish  up  this 
recognition  question.  I  thought  when  I  opened  it  we'd  do  it  in  half  an  hour — 
we  have  already  spent  little  over  an  hour  on  it — but  I  don't  want  to  cut  off  the 
others  who  have  indicated  they  want  to  speak.  I  would  just  ask  their  indulgence 
in  winding  it  up  quickly. 

Senator  Ferguson.  Up  to  that  point.  Governor,  was  the  majority 
discussion  for  recognition,  or  against  recognition  ? 

Mr.  Stassen.  Overwhelmingly  for  recognition  and  I  myself  and 
most  of  those  who  opposed  it  had  not  yet  been  recognized  to  speak 
and  that  was  when  the  5-minute  rule  was  put  into  effect. 

Senator  Smith.  Just  preceding  the  part  that  you  quoted,  Governor, 
Mr.  Rosinger  is  shown,  as  I  understand  his  testimony : 

Therefore,  I'd  like  to  suggest — 

that  is  at  the  bottom  of  page  61 — 

as  a  generalization,  that  the  process  of  disentanglement  be  carried  forward 
as  rapidly  as  we  can  carry  it  forward,  as  a  basis  for  preparing  public  opinion 
as  a  basis  for  early  recognition. 

Mr.  Stassen.  That  is  right.  That  is  Mr.  Rosinger,  who  I  said  was 
one  of  the  leaders  of  the  Communists. 

Senator  Smith.  Right  after  that  Mr.  Jessup  spoke.  That  is  what 
you  quoted. 

Mr.  Stassen.  That  is  right. 

Then  on  page  65  Mr.  Reischauer  speaks,  at  the  bottom  of  the  page. 
He  begins  there,  and  the  significant  sentence — it  is  all  in  line  with 
this — but  on  the  bottom  of  the  page,  that  is,  page  66,  the  sixth  line  up, 
he  says  this : 

We  seem  to  be  in  very  general  agreement  about  the  desirability  of  recognizing 
the  Communist  government  in  China  and  recognizing  it  fairly  soon. 

I  trust  you  will  recall  that  it  was  denied  when  I  said  that  there 
was  a  prevailing  opinion  in  this  direction  in  this  conference. 

Senator  Ferguson.  On  page  65  at  the  bottom  it  says  that  the  Com- 
niunist  govermnent  is  a  de  facto  government  and  be  prepared  to  recog- 
nize it  whether  we  like  it  or  not. 


1260  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Stassen.  Yes.  I  might  say  further  that  there  was  no  question 
involved  here  of  de  factor  or  de  jure  recognition.  I,  of  course,  have 
noticed  that  some  of  the  press  have  endeavored  to  interpret  some  of 
these  comments  that  it  might  have  been  de  facto.  Dr.  Jessup  himself 
clearly  indicated  at  the  opening  of  this  discussion  that  it  had  to  be 
de  jure,  that  you  could  not  consider  de  facto  of  a  Communist  regime 
because  they  would  not  accept  a  de  facto  recognition. 

Senator  Ferguson.  This  was  only  speaking,  though,  about  a  de 
facto  government? 

Mr.  Stassen.  That  is  right,  but  it  was  speaking  of  a  de  jure  recog- 
nition of  a  de  facto  government. 

On  page  33,  to  go  back  just  on  this  point  since  you  raise  it,  on  the 
bottom  of  the  page  Dr.  Jessup  is  speaking.  Mr.  Staley  has  raised  the 
question.    He  said  just  ahead  of  that : 

I  think  some  of  us  assumed  there  might  be  some  difference  as  alternatives 
between  de  facto  and  de  jure  recognition,  but  from  what  he  said — 

that  is,  referring  back  to  Butterworth — 

I  gather  it  comes  down  to  whether  we  go  whole  hog  or  not — 

this  is  before  all  this  discussion  takes  place — 

that  is,  he  indicated  that  the  Chinese  Communists  would  not  play  ball  on  any 
other  basis  but  the  full  de  jure  recognition,  so  that  was  really  the  only  alterna- 
tive open  to  us. 

Now,  this  is  before  all  this  discussion,  so  it  is  clear  from  this  whole 
transcript  that  all  this  discussion  of  recognition  is  on  the  basis  of  a 
de  jure  recognition  of  the  Chinese  Communists,  and  the  chairman 
himself  says  at  that  point.  Dr.  Jessup : 

I  think  in  terms  of  what  we  know  about  the  Communist  position  it  is  true 
what  we  have  had  frequently  in  the  past  is  a  situation  in  which  by  admitting 
certain  authorities  are  de  facto  authorities  in  the  area  you  can  do  business  with 
them  and  we  have  operated  through  consular  officers  and  so  de  facto  basis  with 
us  involves  a  question  of  de  jure  recognition. 

Now,  there  seems  to  be  some  words  skipped  there ;  and  then  he  says 
this: 

It  is  indicated  by  the  current  Chinese  Communist  position  that  they  are  not 
ready  to  shift  their  attitude.  They  refuse  to  acknowledge  representatives  or 
foreign  consular  authorities  on  any  basis  on  de  facto  basis  in  Shanghai — in  that 
or  any  other  place — and  until  the  de  jure  recognition  is  extended  they  will  con- 
tinue their  policy  of  discrimination. 

There  is  further  discussion  of  that,  but  I  think  anyone  can  read 
through  a  number  of  pages,  and  it  is  very  clear  that  this  whole  dis- 
cussion as  indicated  by  Dr.  Jessup  himself  was  of  de  jure  recognition. 

Mr.  SouRwiNE.  Governor,  you  read  a  moment  ago  a  statement  by 
Mr.  Reischauer.    Who  was  Mr.  Reischauer? 

Mr.  Stassen.  He  is  a  professor,  the  department  of  far  eastern  lan- 
guages, at  Harvard ;  on  the  faculty  there. 

Going  over  to  page  66,  I  read  to  you  that  "We  seem  to  be  in  very 
general  agreement     *     *     *"     and  so  on. 

Mr.  Morris.  And  that  was  from  the  testimony  of  Mr. 

Mr.  Stassen.  Reischauer. 


INSTITUTE    OF   PACIFIC    RELATIONS  1261 

Then  comes  a  significant  section  from  him  on  page  67,  the  second 

paragi^aph : 

I'd  like  to  offer  one  practical  suggestion,  would  it  be  possible  to  act  in  con- 
junction with  a  country  like  India?  I  think  tliut  would  make  it  more  palatable 
to  our  own  people  and  more  palatable  in  Asia,     *     *     * 

The  next  thing  of  significance  is  on  page  70  by  Mr.  Benjamin  Kizer. 
Mr.  Kizer  says  in  the  middle  of  the  page : 

I  should  like  to  follow  Mr.  Lattimore  with  the  suggestion  to  go  on  trading 
before  recognition. 

This  was  a  matter  of  continuing  the  American  trade  of  goods  to 
Commiuiist  China  in  the  period  of  the  weeks  before  you  recognized. 

Mr.  Morris.  Are  you  now  going  into  a  second  point? 

Mr.  Stassen.  They  are  so  interlocked;  I  will  come  back  and  tie 
them  together. 

Then  he  said — here  is  another  part  you  will  find  in  here.  Dr.  Hol- 
combe  of  Harvard,  had  suggested  that  before  we  go  on  and  recognize 
this  government  we  ought  to  insist  on  some  reform,  some  assurance 
that  the  minority  parties  in  China  will  have  a  chance,  that  they  will 
not  all  be  liquidated — and  Mr.  Kizer  says : 

I  couldn't  go  as  far  as  Dr.  Holcombe's  suggestion  that  they  reform  their  govern- 
ment by  recognizing  various  parties. 

He  said : 

That  is  a  matter  of  scuttling  recognition  and  introducing  conflict  where  we 
should  introduce  agreement. 

In  other  words,  he  does  not  want  to  introduce  a  conflict  with  Chinese 
Communists  by  insisting  that  they  have  to  have  some  minority  party 
representation.  He  wants  to  have  agreement  with  the  Chinese  Com- 
munists. 

Senator  FEROusoisr.  They  seem  to,  down  at  the  bottom,  also  say  that 
you  recognize  a  country  and  you  lift  the  iron  curtain  as  far  as  that 
country  is  concerned. 

Mr.  Stassen.  He  made  an  argTiment  of  that.- 

Senator  Ferguson  (reading)  : 

If  we  long  withhold  recognition,  we  shall  be  contributing  to  an  iron  curtain 
between  ourselves  and  China  ;  therefore,  I  would  like  to  see  that  recognition  come 
just  as  quickly  as  the  facts  of  life  reached  by  Congress  and  the  American  people 
permit  it. 

The  American  people  will  rather  quickly  adapt  themselves  to  it. 

As  a  matter  of  fact,  that  has  not  happened  in  the  country? 

Mr.  Stassen.  It  was  pointed  out  by  others  in  the  conference  that 
recognition  did  not  open  up  iron  curtains,  that  many  countries  recog- 
nized that  where  the  curtain  had  been  at  that  time  it  continued  to  cut 
us  off  from  them. 

Then  on  page  71,  the  second  paragraph,  still  Mr.  Kizer  speaking, 
he  says : 

One  thing  further,  and  here  I  follow  Mr.  Robertson. 

You  remember  the  letter  I  read  you  on  that  matter  of  trade — 

I  think  we  should  make  a  public  disavowal  of  the  blockade  Chiang  Kai-shek  is 
conducting  with  respect  to  China,  and  I  would  like  to  see  that  followed  up  at  an 
early  date  with  the  withdrawal  of  recognition. 


2262  INSTITUTE   OF   PACIFIC   RELATIONS 

That  means  withdrawal  of  recognition  from  Chiang  Kai-shek  and 
the  China  Nationalists.  It  was  after  all  of  this  that  I  then  spoke  on 
the  top  of  page  73.  I  refer  to  it  now  simply  to  confirm  that  I  had 
directly  raised  these  issues  and  spoken  at  that  time. 

In  the  third  paragraph  down  of  my  first  direct  comment  on  it,  I 

said : 

On  some  of  the  related  discussion  this  morning  that  has  been  advanced  along 
with  recognition  or  steps  we  ought  to  take,  which  I  say  frankly  to  me  could  be 
best  characterized  as  steps  that  would  hasten  the  victory  of  the  Communists  in 
China  and  basten  the  complete  liquidation  of  the  Nationalist  Government. 

There  confirmed  in  the  official  State  Department  transcript  now 
released  to  the  committee  are  those  words  of  mine  spoken  across  the 
•table  following  all  the  things  we  have  covered  in  this  transcript  this 
morning,  and  you  can  search  this  transcript  and  you  will  find  no  one 
deny  at  that  time  or  counter  my  characterization  at  that  time  of  the 
steps  that  were  taken  being  advocated. 

Then  I  say : 

To  me  that  would  be  a  very  sad  mistake  in  our  world  policy. 

This  goes  to  the  point  that  Senator  Ferguson  made  a  moment  ago. 
It  is  on  the  top  of  page  74. 

If  we  recognize  the  Communist  government  of  China,  now  clearly  that  does 
mean  we  must  at  the  same  time  not  only  withdraw  recognition  of  the  other 
government,  the  Nationalist  Government,  but  we  must  then  join  in  an  affirm- 
ative action  to  throw  the  Nationalist  Government  out  of  the  United  Nations. 
There  are  no  half-way  measures  on  this.  You  cannot  be  recognizing  a  govern- 
ment in  one  way  and  then  in  the  United  Nations  tribunal,  in  which  we  are  a 
great  and  leading  Nation,  take  a  different  position  to  that ;  nor  should  we  possibly 
abstain.  That  would  be  a  cowardly  and  weak  position  to  take.  So  we  would 
then  be  in  the  position  of  going  into  the  United  Nations  with  our  great  prestige 
and  throw  out  from  that  United  Nations  the  representatives  or  whatever  you  may 
wish  to  call  them,  the  remnants  of  a  former  government  that  still  has  now,  and 
I  think  for  some  foreseeable  time,  the  effective  jurisdiction  over  one-third  of 
the  area  of  China,  one-third  of  its  people,  and  that  is  continuing  to  put  up  some 
form  of  resistance  of  the  Communist  areas. 

Then  I  continue  to  put  ourselves  in  that  position,  which  in  my  mind 
cannot  be  countenanced. 

Gentlemen,  from  an  extensive,  even  though  rapid,  analysis  of  this 
transcript  since  it  was  released  I  make  these  comments  which  I  believe 
are  carefully  objective  and  factual.  It  will  be  found  throughout 
the  transcript  that  a  group  of  men  stayed  very  close  together  and 
that  Mr.  Lattimore  and  Mr.  Rosinger  led  their  discussion  with  the 
numbers  of  times  spoken,  as  I  indicated,  and  that  these  men  frequently 
supported  each  other  directly  with  comments.  They  never  differed 
with  one  another  in  the  3  days  on  any  important  point. 

These  men  were  about  12  in  number.  In  the  most  active  part  of 
them,  those  that  made  the  sharpest  statements  and  spoke  the  most 
repeatedly,  are  Mr.  Lattimore,  Mr.  Lawrence  Rosinger,  Mr.  Nathaniel 
Peffer,  Mr.  William  S.  Robertson,  Mr.  Edmund  Reischauer,  and  Mr. 
Benjamin  Kizer. 

On  presenting  these  facts  to  you  I  say  again  that  I  do  not  attempt 
to  assess  motives.  I  specifically  decline  to  do  so.  I  am  bringing  these 
facts  out  because  not  only  that  they  have  been  challenged  in  these 
deceptive  releases  by  the  State  Department,  but  because  these  same 
men  in  part  are  now  active  in  writing  about  India  and  have  been  play- 
ing a  part  in  Indian  affairs. 


INSTITUTE    OF   PACIFIC   RELATIONS  1263 

Senator  Smith.  Governor,  you  said  about  a  dozen  of  those  men  who 
participated  in  that  conference  did  not  vary  in  their  feeling  ? 

Mr.  Stassen.  That  is  correct. 

Senator  Smith.  Do  you  interpret  that  as  meaning  that  they  had, 
prior  to  this  conference,  discussed  these  matters  and  reached  a  common 
conclusion  for  a  course  they  should  pursue  in  discussion  ? 

Mr.  Stassen.  I  do  not  draw  any  conclusion.  I  do  not  feel  it  is  my 
place  as  a  witness  to  draw  conclusions.  I  am  testifying  simply  as  to 
fact  and  endeavoring  to  do  it  as  objectively  as  I  can  in  view  of  my 
great  feeling  in  this  issue  affecting  our  country. 

I  might  say  here  again  what  I  said  to  the  Sparkman  committee  the 
other  day  as  to  these  participants  in  the  pattern  of  action  that  has  led 
to  this  disaster  for  our  country  and  for  China.  I  said  then  there  can 
be  no  question  but  that  many  of  the  participants  had  the  best  of  inten- 
tions and  good  motives.  There  can  be  no  question  that  many  of  the . 
participants — this  was  not  the  total  pattern  of  action  I  am  tallying 
about— but  there  can  be  no  question  that  many  of  the  participants 
were  such,  due  to  ignorance  or  misunderstanding  of  the  vital  facts, 
and  there  can  be  no  question  that  many  of  the  participants  were  patri- 
otic citizens  of  this  country  who  made  errors  of  judgment. 

There  can  be  no  question  but  that  many  of  the  participants  were 
knowing  associates  of  the  Communist  design  in  connection  with  the 
pattern. 

Those  are  the  four  classifications  which  I  believe  are  comprehensive 
as  to  the  way  in  which  men  could  play  a  part  in  a  pattern  of  action 
which  has  led  to  a  major  disaster  for  our  country. 

Senator  Ferguson,  Governor,  I  noticed  in  your  remarks  now  you 
have  indicated  that  you  did  not  want  to  draw  any  inference  on  the 
relation  to  these  men  who  were  before  the  conference.  But  when  you 
came  to  the  question  of  what  the  State  Department  has  done  recently 
do  you  feel  the  same  way  about  their  conduct  in  the  releases  they  have 
made  on  your  testimony  ? 

Mr.  Stassen.  I  feel  as  a  witness  that  I  am  not  to  draw  conclusions ; 
that  I  can  state  the  simple  fact  that  during  the  last  10  days  it  has 
now  been  proved  and  admitted  that  a  whole  series  of  statements  in 
State  Department  releases  were  false  and  deceptive  when  they  were 
made. 

Senator,  we  have  now  sort  of  brought  into  focus  this  crucial  point  of 
recognition  and  one  of  the  central  points  in  my  testimony,  and  I  had 
some  of  the  leading  development  in  the  prevailing  group  in  my  testi- 
mony. 

With  your  permission  I  would  like  to  go  through  and  tie  together 
the  other  points  of  the  10  which  I  said  came  up  to  the  surface  during 
this  discussion.  From  a  standpoint  of  this  analysis,  as  you  are  aware, 
I  took  up  the  matter  of  recognition  first  because  it  seemed  to  fit  the 
best  in  the  analysis  of  the  transcript. 

My  first  presentation  of  the  10  points  I  gave  is  as  to  the  fourth 
point.  Then  as  the  fifth  point  I  said  at  that  time  that  the  United 
States,  this  group  had  urged,  should  encourage  the  recognition  of 
the  Communist  People's  Republic  government  by  Britain  and  India 
and  follow  with  its  own  recognition  soon  thereafter. 


22848— 52— pt.  5- 


1264  INSTITUTE    OF    PACIFIC   RELATIONS 

The  Chairman.  Governor,  before  you  go  into  that,  I  would  like  to 
ask  a  question  following  your  last  statement. 

During  the  course  of  your  statements  you  have  stated  that  at  one 
time  at  a  recess  you  said  to  the  chairman,  Dr.  Jessup,  and  I  am  express- 
ing it  liberally  and  not  quoting,  that  you  hoped  that  this  movement 
of  recognition  would  not  prevail. 

And  he  said  to  you  in  return  that  the  greater  logic  was  in  favor  of 
those  who  favored  recognition.  That  is  the  substance  of  what  you 
said.  Did  you  at  any  time  during  the  course  of  that  hearing  hear  Dr. 
Jessup  make  any  further  statement  along  that  same  line? 

Mr.  Stassen.  No,  Senator.  That  discussion  took  place  following 
this  comment  that  we  have  gone  into  here  this  morning.  In  other 
words,  everything  that  I  have  thus  far  given  you  and  more  came  into 
this  morning's  session — I  can  give  you  the  point  of  the  break  for 
luncheon.    This  was  the  third  day. 

You  recall  on  page  61  Dr.  Jessup  said,  after  there  had  been  much  of 
this  prorecognition  talk — 

I  hate  to  suggest  any  limitation  on  yonr  discussion  because  it  is  extremely 
valuable,  and  I  think  this  morning  has  been  very  much  to  the  point  and  ex- 
tremely useful,  but  we  do  want  to  cover  a  number  of  other  subjects  before  we 
break  up. 

Then  that  was  approaching  noon.  I  am  looking  for  the  point  in 
the  record.    I  do  not  see  it  immediately.. 

But  after  that  presentation  we  have  been  covering,  as  I  testified  on 
October  1,  and  my  feeling  is  reflected  in  what  I  had  said,  and  my  feel- 
ing is  my  alarm  was  raised  by  this  statement  we  just  read  that  Dr. 
Jessup  had  made  at  the  conference.  I  stepped  up  and  said  I  hoped 
they  would  not  follow  the  line  developed  by  the  Lattimore  group. 

That  is  when  he  said  to  me  he  felt  the  greater  logic  was  in  that 
group.  Then  I  pleaded  with  him  not  to  proceed  with  that  without 
first  going  out  to  see  General  Mac  Arthur.  That  was  when  I  made  that 
plea  then,  at  noon  hour  on  this  day  of  C>ctober  8. 

Senator  FERCusoisr.  Did  you  ever  cor.tend  that  was  on  the  record  ? 

Mr.  Stassen.  No.  I  made  it  clear  here  it  was  in  recess  when  I 
stepped  up  to  him. 

Senator  Ferguson.  I  find  a  headline  in  the  newspaper — I  don't 
find  the  part  of  the  text  of  the  article — but  it  is  in  the  fourth  headline : 
"Round-table  transcript  fails  to  suj)port  Stassen's  charge  of  softness 
by  Jessup." 

Had  you  ever  contended  outside  of  the  statement  here  in  regard  to 
your  discussion  with  Jessup  that  more  logic  was  with  the  opposing 
force  ? 

Mr.  Stassen.  No.  I  developed  these  facts  in  the  first  hearing ;  that 
that  conversation  took  place  at  recess  and  that  the  supplementary  im- 
plementation of  what  was  recommended  by  the  opposing  group  was  a 
further  fact  indicating  they  did  move  to  implement  the  opposing 
group. 

Senator  Ferguson.  Have  you  ever  contended  that  the  transcript 
did  show  the  Jessup  was  soft  ? 

Mr.  Stassen.  Quite  the  contrary ;  I  made  it  clear  this  was  a  recess 
discussion. 

Senator  Ferguson.  That  it  never  was  on  the  transcript? 

Mr.  Stassen.  That  is  right. 

Senator  Smith.  Had  you  better  not  point  that  out  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1265 

The  Chairman.  That  is  the  page  of  his  own  testimony. 

Senator  Smith.  That  would  indicate  he  was  talking  at  a  recess,  not 
on  the  record. 

Senator  Feeguson.  I  assume  this  headline  was  not  written  by  the 
man  who  wrote  the  article  because  it  is  not  in  the  article. 

M,r.  Stassen.  That  is  a  continuing  problem  with  reporters  and  the 
press  and  everybody  else. 

Mr.  SouRwiNE.  This  whole  document  is  the  morning  session  on  Sat- 
urday, the  8th,  is  it  not  ? 

Mr.  Stassen.  That  is  right. 

Mr.  SouRwiNE.  The  adjournment  was  at  the  end  of  this  particular 
document  ? 

Mr.  Stassen.  Yes;  I  see  that  now. 

The  Chairman.  I  had  one  other  question  I  wanted  to  ask  the  Gov- 
ernor following  the  former  question. 

Did  you  ever  hear  Dr.  Jessup  during  the  course  of  those  hearings, 
or  during  the  course  of  those  meetings,  recede  from  the  position  that 
he  had  evinced  to  you  when  he  said  that  the  greater  logic  was  in  favor 
of  the  other  side  ? 

Mr.  Stassen.  No.  In  fact,  he  never  expressed  any  opinion  different 
than  that  he  said  that  the  greater  logic  was  on  that  side.  As  I  say,  I 
followed  closely  in  the  succeeding  months  what  was  happening  and 
concluded  then  that  they  were  moving  to  implement  that  other  group 
policy  that  has  been  advanced. 

I  think  we  can  demonstrate  that  more  this  morning.  This  finally 
led  me  by  April  of  the  next  year  to  ask  Senator  Connally  whether  I 
could  not  come  to  the  executive  session  of  the  Foreign  Relations  Com- 
mittee on  this  matter.  My  feeling  is  they  were  moving  to  implement 
the  opposing  group,  and  it  is  not  a  feeling  I  now  have  alone.  It  is  a 
feeling  that  I  had  as  the  events  moved,  and  I  demonstrated  I  had  it  by 
pleading  with  Senator  Connally  to  hear  me  on  it. 

Mr.  Sourwine.  Governor,  if  the  statement  Mr.  Jessup  made  to  you 
in  response  to  your  statement  to  him  about  who  had  the  logic  occurred 
at  the  end  of  the  morning  session  on  Saturday,  the  8th,  it  then  occurred 
after  the  conclusion  of  this  entire  conference  ? 

The  Chairman.  No. 

Mr.  Sourwine.  Was  not  the  morning  session  of  Saturday  the  last 
session  of  the  conference  ? 

Mr.  Stassen.  I  believe  it  ran  over  a  bit.  I  don't  think  we  came  back. 
I  am  not  quite  sure  on  that. 

Mr.  Sourwine.  The  transcript  shows  the  adjournment  was  at  12 :  55 
and  concludes  by  words  from  Dr.  Jessup  which  appear  to  be  a  sort  of  a 
bon  voyage  to  the  conferees. 

Mr.  Stassen.  Yes ;  you  are  right,  adjourned  at  12 :  55.  We  ran  over 
about  an  hour  in  order  to  conclude.    That  concluded  it  at  12 :  55. 

Mr.  Sourwine.  So  what  he  said  was  at  the  conclusion  of  the  entire 
conference  ? 

Mr.  Stassen.  That  is  right.  ^ 

Senator  Ferguson.  Did  you  cite  your  previous  testimony  showing 
that  you  did  not  contend  that  the  conversation  with  Jessup  about  the 
logic  of  the  argument  was  on  the  record,  but  you  specifically  stated  it 
was  off  the  record  ? 

The  Chairman.  No  ;  he  did  not.    He  was  looking  for  the  place. 
Mr.  Morris.  It  is  on  page  17. 


1266  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr,  Stassen.  Of  your  mimeographed  copy. 
Mr.  Morris.  That  is  right. 

Mr.  Stassen.  I  know  it  was  touched  on  a  number  of  times.  On 
page  17  of  the  mimeographed  transcript  Mr.  Morris  says : 

It  was  subsequent  to  all  of  this  that  you  say  that  Ambassador  Jessup  said  he 
thought  greater  logic  was  on  the  side  of  Lattimore  and  Rosinger? 
Mr.  Stassen.  I  think  you  have  sensed  some  of  my  feelings. 

I  stepped  up  to  Dr.  Jessup  and  the  conversation  I  earlier  described 
took  place. 

The  Chairman.  That  was  on  your  first  day  here  before  this  com- 
mittee ? 

Mr.  Stassen.  Yes,  on  Monday,  October  1. 

Senator  Ferguson.  So  you  never  did  contend  it  took  place  on  the 
record  ? 

Mr.  Stassen.  I  always  made  it  clear  it  was  a  recess  discussion. 

Senator  Smith.  Did  Dr.  Jessup  ever  deny  such  a  conversation  took 
place? 

Mr.  Stassen.  He  testified  to  the  Sparkman  committee — you  had 
better  get  that  exact  testimony.  I  believe  he  said  he  had  no  recollec- 
tion of  such  a  conversation.  I  believe  he  also  said  that  it  could  not 
have  taken  place  because  he  was  always  against  recognition  of  Com- 
munist China. 

Mr.  SouRwiNE.  You  were  not  present  at  the  Sparkman  committee 
hearings  ? 

Mr.  Stassen.  Not  when  he  was  there.  I  was  there  later.  I  em- 
phasize :     You  ought  to  get  the  exact  testimony. 

The  second  point  that  I  would  like  to  take  up  is  what  I  call  point 
No.  5  because  it  ties  in  logically  that  this  group  developed  that  the 
United  States  should  encourage  the  recognition  of  the  Communist 
People's  Republic  Government  by  Britain  and  Indian  and  follow 
with  its  own  recognition  soon  thereafter. 

On  October  6, 1949,  the  a.  m.  transcript  on  page  29,  the  second  page 
numbered  29,  the  third  paragraph,  you  have  Mr.  Kizer,  whom  you  will 
recall  is  one  of  those  I  have  stated  was  one  of  this  leading  prevailing 
group.  As  I  say,  this  is  October  6.  It  is  the  opening  transcript.  Mr. 
Kizer  speaks,  in  the  third  paragraph  : 

Mr.  Chairman,  I'd  like  to  ask  Mr.  Butterworth  a  question.  I'm  wondering 
if  there  would  not  be  an  advantage  to  the  United  States  and  to  relationships 
if  we  were  to  say  to  the  British  at  the  appropriate  moment  we  are  not  ready 
to  recognize  the  Communist  Government,  but  since  your  interests  are  larger  than 
ours,  there  may  be  some  advantage  in  your  recognizing  it  because  of  your  in- 
terests there.     Then  we  will  take  out  time  with  it  ourselves. 

Then  on  the  discussion  we  had  just  been  in  you  will  recall  the  mov- 
ing with  India  by  Dr.  Reischauer  on  page  65  of  the  other  transcript, 
that  is,  the  transcript  of  October  8,  a.  m.  session. 

Mr,  Morris.  Are  you  going  to  come  back  to  the  blockade  part  of  it 
later? 

Mr.  Stassen.  Yes. 

Rdschauer  starts  on  the  bottom  of  the  page,  and  you  go  over  to 
page  67. 


INSTITUTE    OF   PACIFIC   RELATIONS  1267 

Senator  Smith.  That  is  October  6  ? 

Mr.  Stassen.  That  is  October  8,  1949.  At  the  end  of  Reischauer's 
testimony,  page  67  : 

I'd  like  to  offer  one  practical  suggestion.  Would  it  be  possible  to  act  in 
conjunction  with  a  country  like  India?  I  think  that  would  make  it  more  palat- 
able to  our  own  people  and  more  palatable  in  Asia. 

You  will  find  a  couple  of  other  minor  references  to  moving  with 
Britain  and  India.  Those  are  the  most  direct.  You  will  find  that 
Mr.  Decker,  who  was  there  through  the  3  days,  commented,  page  G-3, 
124,  in  other  words,  near  the  end  of  the  transcript  of  October  8.  He 
refers  back  to  Dr.  Reischauer's  recommendation  that  in  the  recog- 
nition of  the  Chinese  Government  very  great  care  should  be  taken  to 
at  least  consult  with  India  beforehand. 

Then  he  said  : 

I  am  very  certain — 

on  the  bottom  of  that  page — 

that  is  in  the  minds  of  the  officers  of  the  State  Department,  that  every  effort 
will  be  made  to  keep  the  great  English-speaking  peoples  in  step,  which  is,  I 
think,  a  very  important  objective  to  be  sought. 

Senator  Ferguson.  Have  you  ever  seen  a  news  item  in  relation  to 
Italy's  recognition  that  it  was  claimed  that  we  had  no  objection  to 
Italy  recognizing  Communist  China  ? 

Mr.  Stassen.  I  have  not  seen  that,  but  we  have  found  out  interesting 
evidence.  In  the  discussions  of  the  House  of  Commons  on  April  6, 
1950,  page  1385  of  the  British  reports  of  the  discussions,  and  remember, 
that  it  was  January  5, 1950,  the  British  had  recognized  Red  China  and 
Parliament  was  not  in  session.  It  came  in  session  some  time  not  long 
before  April  5, 1950.    I  think  it  was  in  March. 

At  that  time  Mr.  Thomas  Reicl,  who  is  a  member  of  the  Labor  Party 
and  somewhat  of  a  specialist  on  far-eastern  affairs — he  had  long  serv- 
ice in  the  Indian  and  eastern  civil  service,  and  he  said,  on  page  1385 : 

As  I  understand  it,  the  American  Government  was  consulted  from  start  to 
finish,  and  I  think  I  am  right  in  saying  that  the  American  Government  raised 
no  opposition  at  all  to  the  recognition  of  the  Communist  Government  by  Britain. 

We  have  followed  through  those  debates  on  that  day,  and  we  find  no 
dissent  from  any  of  the  Ministers  or  anybody  to  that  comment  on  the 
floor  of  the  House  of  Commons  by  one  of  the  well-informed  Labor 
M.  P.'s  in  the  Far  Eastern  Section. 

Senator  Ferguson.  I  would  like  to  put  in  the  record  at  tiiis  place 
the  New  York  Times  article  of  Saturday,  November  11,  1950.  I  do 
not  necessarily  want  to  put  the  headlines  in,  but  I  would  like  to  put 
the  article  in.  It  is  from  Rome.  However,  I  will  read  the  headlines, 
"Sforza  Hints  Soviet  Offered  Italy-China  U.  N.  Entry  Deal." 

I  ask  that  the  entire  article  be  made  part  of  the  record. 

The  Chairman.  Do  you  want  the  whole  article  ? 

Senator  Ferguson.  Yes,  and  take  the  headlines,  too.  I  said  not 
necessarily,  but  take  them. 

The  Chairman.  It  will  go  in. 


1268  INSTITUTE   OF    PACIFIC   RELATIONS 

(The  article  referred  to  is  as  follows :) 

Sforza  Hints  Soviet  Offered  Italy-China  U.  N.  Entry  Deal 

Rome,  November  10. — Foreign  Minister  Count  Carlo  Sforza  told  the  Chamber 
of  Deputies  today  that  the  Italian  Government  had  been  considering  recogni- 
tion of  Mao  Tse-tung's  regime,  but  that  after  the  intervention  of  Communist  Chi- 
nese troops  in  Korea  it  had  postponed  a  final  decision. 

The  Italian  attitude  on  that  question.  Count  Sforza  indicated,  also  had  been 
influenced  strongly  by  some  alluring  suggestions  he  said  had  been  made  to  him 
by  "very  responsible  quarters"  during  his  trip  to  the  United  States  last  September. 
These  suggestions,  he  continued,  were  that  the  Soviet  Union  would  not  veto  Italy's 
admission  to  the  United  Nations  if  the  United  States  and  other  member  States 
would  not  veto  the  admission  of  Communist  China. 

Count  Sforza  abstained  from  saying  who  was  the  author  of  the  suggestion,  but 
he  made  it  clear  that  the  Italian  Government  had  not  yet  abandoned  the  hope  of 
overcoming  the  Soviet  opposition.  Italy,  he  said,  felt  that  the  Peiping  regime 
was  "undoubtedly  the  government  representing  the  overwhelming  majority  of 
the  Chinese  people."  There  were  two  other  reasons,  he  continued,  that  had  deter- 
mined the  Italian  attitude:  commercial  interests  and  plight  of  Roman  Catliolie 
missions  in  China. 

Commercially,  Italy  had  an  appreciable  volume  of  trade  with  China  that  she 
would  like  to  reestablish.  Count  Sforza  said.  He  did  not  explain  why  diplomatic- 
relations  with  Communist  China  would  affect  the  religious  missions,  but  it  was 
assumed  that  he  was  concerned  with  the  fate  of  many  Italian-born  n. embers 
of  the  Catholic  clergy  who  are  now  without  protection  of  any  kind  because  of 
the  lack  of  Italian  repi'esentation  in  China. 

A  motion  by  the  extreme  left  wing  designed  to  reopen  the  whole  question  of 
Italy's  participation  in  the  North  Atlantic  Treaty  caused  today's  foreign  policy 
debate.   'The  motion  was  defeated,  268  to  132. 

The  Foreign  Minister  denied  Communist  contentions  that  the  Italian  Govern- 
ment has  assumed  new  political  and  military  commitments  during  Atlantic 
Pact  meetings  held  recently  in  Washington.  Both  he  and  Randolfo  Pacciardi, 
Minister  of  Defense,  merely  acted  in  accordance  with  the  spirit  and  letter  of  the 
Atlantic  Treaty,  he  said. 

Italy,  be  continued,  was  one  of  the  countries  most  exposed  in  case  of  aggres- 
sion and  she  therefore  was  deeply  interested  in  promoting  European  defense. 

Count  Sforza  asserted  the  Communist  idea  was  that  in  case  Italy  or  any  other 
Atlantic  nation  were  attacked  the  Italian  Parliament  should  decide  whether  ag- 
gression really  existed.  This  would-  enable  the  Communist  parliamentary  mi- 
nority to  use  obstructionist  tactics  and  permit  the  aggressor  to  take  advantage  of 
Italian  military  inactivity,  he  added. 

"If  there  is  aggression,  it  is  clear  that  the  first  task  and  the  supreme  duty  of 
the  Government  is  that  of  defense,  both  individual  and  collective,  in  accordance 
with  the  treat.y,"  he  said.  "Parliament,  of  course,  will  discuss  the  situation  and 
the  political  decisions  that  must  be  made,  as  envisaged  by  the  Italian  Constitution, 
which  gives  it  that  supreme  right.  But  this  cannot  retard — as  the  Communists 
desire — the  deployment  of  military  forces,  which  alone  would  enable  us  not  to  be 
defeated  immediately  at  the  opening  of  hostilities." 

Mr.  Morris.  The  point  here  is  this  paragraph  which  reads : 

The  Italian  attitude  on  that  question,  Count  Sforza  indicated,  also  had  been 
influenced  strongly  by  some  alluring  suggestions  he  said  had  been  made  to  him  by 
"very  responsible  quarters"  during  his  trip  to  the  United  States  last  September. 
These  suggestions,  he  continued,  were  that  the  Soviet  Union  would  not  veto 
Italy's  admission  to  the  United  Nations  if  the  United  States  and  other  member 
states  would  not  veto  the  admission  of  Communist  China. 

That  is  the  pertinent  paragraph. 

The  Chairman.  Very  well. 

Mr.  Stassen.  I  further  stated  as  one  of  the  10  points,  in  fact  No. 
10  of  the  points,  that  no  aid  should  be  sent  to  the  non-Communist 
Chinese  guerrillas  as  were  in  the  south  of  China,  nor  to  the  Chiang 
Kai-shek  forces  and  the  military  supplies  en  route  to  them  should  be 
cut  off.  That  was  another  one  of  those  10  points  urged  by  this  pre- 
vailing group. 


INSTITUTE    OF   PACIFIC   RELATIONS  1269 

Mr.  Chairman,  you  have  already  picked  up  this  comment  of  Mr. 
Rosinger  on  page  60  of  the  October  8  transcript.  At  the  bottom  of 
page  59 : 

I  think,  though,  that  in  terms  of  preparing  American  public  opinion  for  recog- 
nition there  is  a  process  of  disentanglement  from  the  Chinese  Nationalists  which 
can  be  carried  out  in  the  weeks  ahead,  and  I  think  to  the  extent  we  disentangle 
ourselves  from  the  Chinese  Nationalists  we  lay  the  basis  for  recognition. 

As  a  matter  of  fact,  if  we  were  to  recognize  today,  assuming  that  were  possible, 
we  would  be  in  a  highly  contradictory  situation  of  recognizing  at  the  time  that 
we  were  delivering  through  EGA  supplies  to  Formosa — 

and  so  on. 

We  have  not  yet  cleared  ourselves  from  the  entanglement,  from  the  National- 
ists. I'd  like  to  suggest,  although  I  am  not  informed  on  the  technical  questions 
and  the  problems  of  carrying  out  some  of  these  actions,  that  we  end  our  ECA 
assistance  as  soon  as  possible  to  the  remnants  of  the  Chinese  Nationalists. 

That  is  Lawrence  Rosinger  on  the  top  of  page  60  of  this  transcript. 
I  say  here  again :  You  can  search  this  prevailing  group  through  this 
conference,  and  you  will  find  no  dissent  from  this  that  is  advanced  by 
Mr.  Rosinger, 

Mr.  Morris.  Governor,  do  you  recall  that  Paul  Hoffman,  who  was 
the  head  of  ECA,  had  made  a  similar  recommendation  publicly  ? 

Mr.  Stassen.  No. 

Senator  Ferguson.  Did  you  know  he  made  a  speech  in  which  he  ad- 
vocated the  furnishing  of  aid  to  Communist  China  ?  I  would  like  to 
get  the  date  and  put  it  in  the  record. 

Mr.  Stassen.  I  do  not  know  of  that.  I  do  not  know  that  I  want  to 
associate  myself  with  that  comment  because  I  don't  recall  it.  I  think 
there  was  a  conference. 

Senator  Ferguson.  I  will  put  the  date  in  later,  Mr.  Chairman. 

(The  information  referred  to  is  as  follows:) 

December  13,  1948. 

Mr.  Stassen.  Are  you  sure  that  was  not  part  of  the  earlier  situation  ? 

Senator  Ferguson.  In  1948. 

Mr.  Stassen.  There  were  some  major  conferences  at  different  times 
about  aid  to  China.  I  don't  recall  it  in  this  period.  I  was  watching 
things  very  closely  in  this  period. 

Senator  Ferguson.  I  think  it  was  December  1948. 

Mr.  Stassen.  I  want  to  be  sure  not  to  associate  myself  with  that 
characterization. 

Senator  Ferguson.  I  just  take  it  as  part  of  the  policy  that  was  being 
advocated. 

Mr.  Stassen.  I  am  not  sure  it  was  in  the  period  subsequent  to 
October  1949's  conference. 

Senator  Ferguson.  I  would  like  to  get  that  information  and  put  it 
in,  as  I  said  before. 

The  Chairman.  Very  well. 

Governor  Stassen,  do  you  know  of  your  own  knowledge  or  from  any 
information  given  to  you  that  is  authentic  as  to  how  Dr.  Jessup  came 
to  be  chairman  of  this  meeting  that  took  place  ? 

Mr.  Stassen.  It  was  publicly  announced  that  on  July  27,  1949,  Dr. 
Jessup  would  be  in  charge  of  a  review  of  our  policy  in  China  and  the 
Far  East,  and  the  announcement  was  by  Dean  Acheson.  Then  a  few 
days  later  it  was  announced  that  Dr.  Fosdick  and  Dr.  Case  would 
assist  him  as  a  committee  of  three  in  the  review. 


1270  INSTITUTE    OF   PACIFIC   RELATIONS 

The  Chairman.  But  as  to  his  presiding  over  the  meeting:,  did  you 
know  anything  further  as  to  how  it  was  brought  about?  In  other 
words,  was  there  any  action  ? 

Mr.  Stassen.  There  was  testimony  from  Jessup  in  the  Sparkman 
hearings  on  it.  I  would  prefer  you  get  that  testimony  of  his  as  to 
how  the  conference  was  developed  and  how  he  chairmaned  it. 

Senator  Ferguson.  Were  you  familiar  with  the  fact  there  had  been 
another  conference  on  this  question  where  members  of  labor  were  called 
in  and  consulted  ? 

Mr.  Stassen,  I  had  no  information  on  that  until  I  was  informed 
here  at  the  committee  hearing  the  other  day  there  had  been  another 
conference  with  labor.    I  had  never  heard  of  it. 

Senator  Ferguson.  I  would  like  to  ask  counsel  if  we  have  received 
the  statements  taken  at  that  conference  ? 

Mr.  Morris.  We  have  asked  the  State  Department  to  make  that 
transcript  available,  but  as  yet  we  have  not  had  a  reply.  That  letter, 
T  believe,  went  out  someday  last  week. 

The  Chairman.  Senator  Smith,  the  chairman  must  go  on  the  floor. 
Would  you  kindly  take  the  Chair  ? 

Mr.  Stassen.  You  will  recall  as  the  first  two  points  that  I  said 
that  the  prevailing  group  had  developed  in  the  recommendations  was 
that  Asia  should  be  approached  as  a  long-term  problem  to  be  studied 
and  deferred ;  that  the  Russian  Communist  attention  was  concentrated 
first  on  Western  Europe  with  its  industrial  strength ;  that  the  United 
States  should  likewise  give  priority  to  Europe  and,  second,  that  an 
aid  to  Asia  program  should  not  be  started  by  the  United  States  until 
after  long  and  careful  study  because  of  the  complexity  of  Asia  and  the 
dangers  of  a  Communist  charge  of  United  States  imperialism. 

Then  further,  to  evaluate  that  part  of  the  transcript,  the  transcri])t 
does  show,  as  I  stated,  that  I  had  urged  a  prompt  aid  to  Asi^i  program 
with  the  headquarters  in  Bangkok  and  a  parallel  to  the  Marshall  plan 
to  fill  the  vacuum  that  existed  in  south  Asia  and  had  expressed  the 
view  that  the  Communists  would  be  pushing  in  if  any  such  vacuum 
were  left. 

Mr.  Nathaniel  Peffer  on  October  7, 19^49,  in  the  a.  m.  session  directly 
begins  to  counter  my  proposal.  Mr.  Lattimore  had  also  begun  to 
counter  it  the  day  before.  Mr.  Peffer  steps  in  on  October  7,  1949, 
in  the  a.  m.  session,  page  E-9,  the  third  paragraph.  I  might  say  the 
discussion  sort  of  varied  between  the  matter  of  an  association  together 
and  an  economic  group  like  the  Marshall  plan,  the  forming  of  some 
kind  of  an  alliance,  but  there  was  considerable  discussion  of  some 
positive  action  linking  together  in  some  way  the  non-Communist  na- 
tions of  south  Asia  and  strengthening  them  against  the  Communist 
threat. 

Here  is  what  Mr.  Peffer  said : 

Would  there  be  any  chance  of  such  an  alliance? 

He  goes  on  to  discuss  it.   He  says,  at  the  bottom  of  the  page : 

You  ask  yourself :  "Would  there  be  any  such  a  pact  without  our  encourage- 
ment and  support?" 

He  means  American  encouragement  and  support. 

If  there  would  not  be,  I  should  say  that  would  fairly  well  deline  it  as  un- 
natural and  not  very  likely  to  survive,  in  which  case  we  are  associated  with 
something  that  is  going  down.    J  think  we  ought  to  give  up.    If  it  goes  on  its 


INSTITUTE    OF   PACIFIC    RELATIONS  1271 

own  momentum,  if  it  grows  out  of  its  Asian  Congress,  well  and  good ;  but  other- 
wise, no.  We  ought  to  keep  out  until  it  is  started  under  its  own  genius  and 
power. 

I  recall  the  whole  beginning  of  the  Marshall  plan  because  of  Secre- 
tary Marshall's  address  at  Harvard  that  gave  the  impetus  and  the 
push  to  that  development  there.  Here  is  the  opposing  statement  that 
we  should  stay  out  unless  it  develops,  et  cetera. 

Following  that  through  on  page  E-11  immediately  after  that  Dr. 
Coons  says  this : 

May  I  conclude  that  this  discussion  with  reference  to  regional  association  is 
almost  entirely  at  the  political  level  and  that  we  really  haven't  discussed  the 
question  of  the  economic  side  that  there  is  conceivably  much  to  be  said  on  the 
aspect  of  a  regional  economic  approach,  somewhat  after  the  manner  of  what  we 
were  talking  yesterday  in  reply  to  Mr.  Stassen's  discussion. 

Chairman  Jessup  said : 

We  might  come  back  to  that  after  lunch. 

Then  after  lunch  Mr.  S.  C.  Brown  is  brought  in  as  an  official  of  the 
State  Department  to  breif  the  conference  on  this  matter  of  the  re- 
gional-economic-aid approach.  You  will  find  that  on  the  p.  m.  session 
of  October  7,  page  A-3.  Here,  of  course,  I  am  very  greatly  concerned 
because  here  we  are  moving  right  over  into  the  Indian  situation,  which 
is  the  matter  that  gives  me  the  greater  concern  at  this  time, 

Mr.  Morris.  Excuse  me,  Governor.  You  did  not  testify  concerning 
this  particular  phase. 

Mr.  Stassen.  Yes,  I  did.  I  said  that  the  prevailing  group  recom- 
mended 10  points. 

Mr.  Morris.  But  this  afternoon  session  of  the  7th,  were  you  present 
at  that  time  ? 

Mr.  Stassen.  No;  but  in  the  subsequent  discussions,  and  of  course 
in  the  briefing  that  I  received  as  I  would  come  back  from  being  out 
of  the  room,  there  were  men.  Dr.  Talbot  particularly,  so  then  I  kept 
a  sequence  of  the  development  of  the  whole  discussion,  even  though  I 
had  to  move  out  and  in  a  bit. 

On  page  A-3  as  Mr.  Brown  begins  his  briefing,  down  at  the  bottom 
he  says : 

Now,  the  other  thing  which  has  appeared  to  us  in  our  consideration  of  the 
matter  is  this — 

this  is  now  talking  about  south  Asia  regional  economic  action — 

That,  as  Mr.  DuBois  said  this  morning,  the  economies  of  those  areas  are  not 
interdependent  in  the  same  way  that  economies  of  Europe  are,  for  instance,  and 
you  would  not  in  all  probability  get  in  those  areas  through  the  expenditure  of 
aid  funds  on  a  large  scale  the  accumulative  and  multiplying  effect  that  you  get 
by  expenditure  of  similar  funds  in  Europe? 

Then  I  continue  on  page  A-5.  He  gives  a  considerable  discussion 
of  reasons  and  down  on  line  9  he  says : 

Now  for  these  reasons,  among  others,  we  have  been  inclined,  I  think,  to  go  slow 
in  that  concept  of  an  over-all  program  of  the  Marshall  type  in  that  part  of  the 
world.  The  reasons  may  not  be  conclusive.  I  don't  know.  But  I  just  wanted 
to  indicate  that  we  have  given  that  type  of  thing  some  consideration. 

There  was  the  "go  slow,"  and  you  will  find  it  in  the  expressions  of 
'Tt  is  very  complex,  and  it  is  very  confused,"  that  you  must  go  slow, 
and  the  total  transcript  read  will  confirm  that  the  prevailing  opinion 
was  to  go  slow  on  aid  and  the  organization  of  a  regional  program  in  the 
south  of  Asia  against  communism. 


1272  INSTITUTE    OF   PACIFIC   RELATIONS 

« 

Of  course,  as  I  countered  that,  I  directly  pointed  out  while  we 
were  going  slow  the  Communists  were  going  fast,  and  that  was  the 
thing  that  bothered  me  so  much  at  that  time. 

My  recollection  of  the  point  that  the  Russian  Communists  were  not 
as  aggressive  as  Hitler  and  would  not  be  apt  to  take  direct  military 
action  to  expand  their  empire  had  its  origin  in  Mr.  Kennan's  briefing 
on  the  first  morning,  page  19.    He  says : 

I  think  there  is  a  distinction  between  these  Russian  leaders  and  people  like 
Hitler  and  the  Japanese  leaders  of  the  twenties  and  thirties. 

On  page  B-17  he  said : 

*  *  *  never  in  Russian  history  have  the  Russians  ever,  that  I  can  remember, 
been  enthused  about  any  deliberate  aggressive  action  of  their  own  outside  of 
Russia. 

Then  he  discusses  the  different  ideologies  and  the  policies  in  relation 
thereto. 

Then  jou  will  find  in  my  response  to  Mr.  Kennan  at  that  time  I 
said  that  I  felt  that  they  were  just  as  aggressive  as  Hitler  and  would 
prove  to  be  so. 

On  the  Indian  point,  page  8,  that  Prime  Minister  Nehru  had  shown 
reactionary  and  arbitrary  tendencies  and  should  not  be  leaned  on  or 
assisted  as  a  leader  of  non-Communist  forces  in  Asia,  we  find  in 
October  8,  1949,  the  a.  m.  session — I  would  first  like  to  point  out  that 
Mr.  Talbot,  beginning  on  page  110  makes  a  brilliant  presentation,  I 
feel,  of  the  India  situation  and  of  the  policy  we  ought  to  have  toward 
India ;  that  his  presentation  goes  on.  through  a  number  of  pages. 
Then  as  he  concludes,  Mr.  Murphy,  on  page  122,  says  this : 

As  a  minor  note  of  warning  with  respect  to  Mr.  Nehru's  visit  here  next  week 
I  would  like  to  say  that,  in  my  opinion,  and  it  is  an  obvious  remark,  the  Indian 
people  are  not  strong  and  practical  people  in  our  definition  as  we  define  it  here 
and  that  despite  Mr.  Talbot's  glowing  presentation  of  the  opportunities  and  the 
resources  and  the  potentialities  in  India,  nevertheless     *     *     *. 

And  he  goes  into  an  international-bank  question,  and  so  on. 
On  page  123  he  said,  down  at  the  bottom,  that — 

*  *  *  Yet  with  respect  to  the  three  problems  that  they  now  have  at  issue 
with  Pakistan,  of  Kashmir,  of  the  refugee  properties  and  the  water  rights  in 
west  Punjab,  in  each  of  those  three  preponderantly  it  seems  to  me  the  Indians 
are  acting  in  an  arbitrary  manner,  reactionary  and  arbitrary  manner. 

Then  I  say  I  want  to  associate  myself  with  Dr.  Talbot,  and  so  on. 
Then  on  the  top  of  the  page  122  you  will  find  that  after  that  discussion 
by  Dr.  Talbot  of  the  importance  of  moving  affirmatively  on  India  and 
of  developing  a  favorable  Indian  reaction,  Mr.  Lattimore  says: 

In  Mongolian  in  the  expression  of  gi'atitude  a  grateful  man  is  practically 
indistinguishable  from  the  expression  "a  pack  animal  loaded  with  a  burden." 

Mr.  MoRKis.  Wliat  is  the  point  of  that  ? 

Mr.  Stassen.  It  is  a  very  negative  kind  of  comment  regarding  Dr. 
Talbot's  very  able  presentation.  That  is  the  only  response  that  came 
at  that  time  to  that  plea  for  moving  forward  in  India.  Then  Mr. 
Murpliy  follows  up  with  this  note  of  warning  and  this  comment 
about  reactionary  and  arbitrary. 


INSTITUTE    OF   PACIFIC   RELATIONS  1273 

On  Formosa  you  will  find  Mr.  Fairbank  on  October  6,  1949,  in  the 
p.  m.  session,  page  B-11,  saying : 

To  hold  Formosa  would  defeat  our  ends  by  a  miscalculation  of  the  response  in 
China.     *     *     * 

*  *  *  *  *  *  * 

I  wouldn't  hold  Formosa — 

And  so  on.  You  will  find  none  of  this  prevailing  group  at  any  time 
urging  that  we  hold  Formosa.  The  whole  implication  is  to  the  con- 
trary. 

Then  that  it  should  be  United  States  policy  to  permit  the  Chinese 
Communists  to  take  Hong  Kong  if  they  inisted.  You  will  find  one  of 
the  questions  put  up  to  us  specifically  "was:  What  should  be  the  atti- 
tude of  the  United  States  toward  the  status  of  Hong  Kong  ?  You  will 
find  I  made  a  strong  plea  that  we  must  back  up  the  British  in  their 
decision.    It  is  in  the  October  6  transcript. 

You  will  find  Mr.  Butterworth  says  that  the  British  had  not  asked 
us  to  help  them  in  Hong  Kong.  October  6, 1949,  the  a.  m.  session,  page 
C-3: 

The  British  "have  not  sought  any  particular  assistance  through  us"  for  the 
defense  of  Hong  Kong. 

Mr.  Morris.  Was  that  in  response  to  the  point  you  made? 

Mr.  Stassen.  It  was  in  response  to  the  question  raised  in  the  ad- 
vance questions  that  were  put  out  and  in  response  to  the  general  dis- 
cussion of  how  firm  an  attitude  should  the  United  States  be  taking  in 
Asia  at  that  time. 

Mr.  Morris.  You  had  advocated  a  strong  position  ? 

Mr.  Stassen,  That  is  right.  My  advocation  of  a  strong  position 
came  later. 

Another  reason  I  had  advocated  the  strong  position  was  the  story 
2  days  before  in  the  New  York  Times  by  Mr.  James  Reston,  who,  as 
I  said  the  other  day,  I  always  found  was  a  very  accurate  reporter  in 
foreign  policy.    The  story  on  that  day  said : 

There  is  no  reason  to  believe  that  the  United  States  will  participate  in  any 
show  of  force  in  the  protection  of  Hong  Kong,  the  British  possession  ofC  the 
coast  of  China,  but  respect  for  the  sovereignty  of  this  base  certainly  will  be 
I'egarded  as  one  of  the  tests  employed  by  the  United  States  to  determine  whether 
the  Chinese  Communists  are  prepared  to  respect  the  undertakings  of  China  under 
the  Charter  of  the  United  Nations. 

You  will  find  in  the  general  discussions  in  the  committee  the  whole 
atmosphere  of  the  United  States  not  taking  a  firm  stand  aaginst  the 
Communist  advance  in  China.  Hong  Kong  was  one  of  the  specific 
points  in  regard  to  that. 

I  believe,  Mr.  Chairman,  I  have  made  reference  to  all  of  these  10 
points.  Tliere  are  many  corroborating  references  in  here.  I  might, 
for  example,  point  to  the  October  7  p.  m.  session,  page  D-19,  the 
middle  of  the  page,  where  Dr.  Fairbank  says : 

For  the  record,  also,  the  line  of  anticommunism  in  Asia  is  not  a  very  good  line. 
It  is  a  subjective  projection  of  our  own  view.  The  main  question,  it  is  much 
better  to  be  anti-Kussian  and  a  few  other  things  to  be  anti.  That  is  just  an 
example  of  what  Mr.  Taylor  was  talking  about. 


1274  INSTITUTE   OF    PACIFIC   RELATIONS 

On  page  B-12  Mr.  McNaughton  says  this : 

We  will  never  get  this  world  going  unless  we  start  trade,  and  I  would  start 
trade  with  Communists  in  China  until  I  found  out  they  were  impossible  to  do 
business  with. 

Mr.  Murphy  says : 

I  feel  that  if  we  don't  trade  with  the  Communists  in  China  it  is  pretty  obvious 
that  since  they  have  a  very  crying  need  for  goods  it  simply  amounts  to  forcing 
them  to  trade  with  Russia  on  Russia's  terms. 

I  think,  Senator,  in  my  first  necessarily  concentrated  work  on  this 
transcript  that  fairly  completes  my  presentation  this  morning  in  re- 
sponse to  your  inquiry.  I  respectfully  submit  that  as  to  all  of  these 
comments  I  have  today  testified  to  from  the  transcript  of  these  other 
gentlemen,  when  I  first  appeared  here  I  was  testifying  from  a  recol- 
lection of  a  conference  2  years  old. 

I  believe  that  I  have  now  demonstrated  by  recitation  to  the  official 
transcript  now  at  this  late  date  released  that  every  factor  in  my  recol- 
lection can  be  substantiated  from  the  direct  references  to  recorded 
statements  made  at  the  time,  even  getting  into  such  details  as  this  mat- 
ter of  encouraging  Britain  and  India  to  lead  off  and  matters  of 
stopping  the  supplies  to  the  Chinese  Nationalists  in  that  remaining 
period,  and  factors  of  that  kind. 

As  I  say,  I  respectfully  submit  that  if  careful  students  of  an  im- 
partial nature  are  set  to  work  to  read  through  this  entire  transcript 
that  they  will  not  find  that  this  key  group  in  the  discussion  ever  dif- 
fered with  each  other  on  any  important  point,  and  they  will  find  that 
they,  in  various  ways,  gave  support  to  one  another,  and  that  the  total 
policy  there  recommended  added  up  on  each  of  the  10  points  that  I 
had  originally  presented  from  recollection  that  I  now  have  confirmed 
by  referring  to  the  transcript. 

Senator  Smith.  In  other  words,  Governor,  your  statement  there 
means  so  far  as  j^^ou  have  been  able  to  ascertain, from  examining  the 
transcript  in  the  short  space  of  time  you  had  there  are  no  discrepancies 
in  substance  between  what  you  testified  to  at  your  first  appearance 
before  this  committee  and  what  the  transcript  now  bears  out? 

Mr.  Stassen.  None  whatsoever,  not  only  no  discrepancies  but  a 
great  amount  of  corroboration. 

Senator  Smith.  May  I  ask  one  question  which  may  or  not  be  con- 
nected with  this  conference? 

Was  it  shortly  thereafter  someone  in  the  State  Department  made  a 
speech  about  the  defense  perimeter  of  America  not  including  Formosa 
or  certain  portions  of  China,  Hong  Kong,  and  Korea  ? 

Mr.  Stassen.  That  is  right.    Secretary  Acheson  made  that  speech. 

Senator  Ferguson.  It  was  January  20,  was  it  not? 

Mr.  Stassen.  January  12,  I  believe,  1950,  right  after  the  British 
recognition.  I  went  into  that  sequence  of  supplementary  events  con- 
siderably in  my  first  testimony,  but  it  does  have  a  relevancy  now  that 
we  have  reestablished  from  the  transcript  what  this  conference's 
recommendations  were. 

For  example,  on  the  matter  of  the  protests  on  the  Isbrandtsen  Line 
ships  and  not  recognizing  the  Chinese  Nationalists'  blockade,  you  will 
find  that  Secretary  Acheson  did  those  very  things  in  the  following 
months.  On  November  16,  1949— in  other  words,  6  weeks  after  this 
conference  Mr.  Acheson  protested  the  Nationalists'  firing  on  the  Fly- 


INSTITUTE    OF   PACIFIC   RELATIONS  1275 

ing  Cloud  running  the  blockade,  which  is  directly  what  Mr.  Kizer 
suggested  during  the  conference. 

Again  on  December  5, 1949,  Mr.  Acheson  said  that  the  United  States 
did  not  recognize  the  legality  of  the  Nationalist  blockade  and  pro- 
tested the  shelling  of  the  United  States  ship  of  the  Isbrandtsen 
Line. 

On  December  23, 1949,  that  very  controversial  statement  to  the  Voice 
of  America  and  the  information  service  about  the  anticipated  fall  of 
Formosa  was  given.  On  January  5,  1950,  the  President  and  Mr. 
Acheson  announced : 

The  United  States  had  no  intention  of  providing  military  aid  or  advice  to  the 
Nationalists  on  Formosa  or  of  using  its  Armed  Forces  to  interfere  there. 

That  was  then  characterized  as  the  abandonment  of  Formosa,  which 
was  in  line  with  what  Dr.  Fairbank  and  others  said  at  this  con- 
ference. 

On  January  12,  I  believe,  a  speech  at  the  Press  Club  here  in  Wash- 
ington was  made  that  the  line  was  drawn  that  left  Formosa  on  the 
other  side  of  the  line. 

Senator  Smith.  Those  five  as  I  counted  them — those  five  instances 
seemed  to  carry  out  the  principles  that  had  been  discussed  and  agreed 
to  by  this  group  at  this  conference  that  you  have  been  testifying 
about  ? 

Mr.  Stassen.  There  were  more.  There  was  then  the  basic  fact 
that  the  aid-to-Asia  program  did  not  move.  That  disturbed  me  more 
than  anything  in  that  period.  There  was  nothing  really  forthcoming. 
Then  Mr.  Jessup  made  his  trip  leaving  the  west  coast,  I  think,  about 
December  21,  1949,  getting  into  Tokyo  about  January  5,  1950,  going 
on  through  Asia  and  around  the  world  with  a  conference  in  Bangkok 
and  getting  back  in  March. 

In  the  latter  part  of  March  1950  they  had  the  conference  at  the 
State  Department  of  organization  leaders,  which  I  testified  the  other 
day  I  then  went  and  attended  in  my  relationship  to  the  Council  of 
Religious  Education,  because  I  was  so  concerned  to  know  what  was 
going  to  be  the  policy. 

When  that  conference  ended  with  no  definitive  recognition  of  really 
moving  forward  in  an  Asia  program,  that  is  when  I  wrote  to  Senator 
Connally  and  subsequently  to  Senator  Vandenberg  that  I  was  so 
deeply  concerned  we  were  moving  in  the  wrong  direction  in  Asia, 
that  there  was  a  vacuum  that  the  Communists  would  move  in. 

Senator  Smith.  After  this  conference  what  if  anything  did  Dr. 
Jessup  say  or  do  relating  back  to  this  conference  if  you  recall? 

Mr.  Stassen.  Well,  his  report  to  the  State  Department  conference 
in  March  of  organized  leaders,  to  .the  Senate  Committee  on  Foreign 
Relations  and  then  publicly  was  in  substantial  accord  so  far  as  the 
Asiatic  situation  was  concerned  with  this  conference  on  the  economic 
subjects.     That  is,  with  this  prevailing  group  in  the  conference. 

As  I  recall,  at  that  time  Mr.  Reston  characterized  that  speech  as  be- 
ing that  very  little  could  be  done  for  India  and  Pakistan  and  that 
whole  atmosphere  came  from  Mr.  Jessup's  report  when  he  returned. 
It  was  right  in  the  subsequent  period  that  the  matters  came  up  in  the 
United  Nations  as  to  the  resolutions  of  the  Chinese  Nationalists  over 
this  issue  of  recognition. 


1276  INSTITUTE   OF   PACIFIC   RELATIONS 

Dr.  Jessiip  was  on  the  floor  of  the  United  Nations  speaking  on  those 
issues  November  28,  1949.  In  other  words,  I  do  feel  that  it  is  a  fact 
that  up  to  the  outbreak  of  the  Korean  war  Dr.  Jessup  said  or  did 
nothing  that  was  inconsistent  with  the  10  points  made  by  the  prevail- 
ing group  that  I  know  of  publicly. 

Of  course,  I  mean  studying  the  public  reflections  of  this  situation. 

Mr.  Morris.  Governor,  I  don't  know  whether  you  read  in  the  papers 
or  not,  but  we  have  issued  a  subpena  for  the  Vandenberg  diaries  from 
January  1,  1947,  to  July  1950.  We  have  not  as  yet  issued  a  subpena 
for  the  Forrestal  diaries.  We  are  deciding  who  the  addresses  in  that 
case  will  be.  I  do  want  to  let  you  know  we  have  subpenaed  the 
Vandenberg  diaries.     You  originally  made  the  recommendation. 

Mr.  Stassen.  I  made  the  recommendation  that  you  ask  for  the  day 
of  February  5,  1949.  If  you  would  permit  me  to  do  so,  I  would  not 
want  to  think  you  would  want  to  call  that  entire  diary  out  of  the 
hands  of  Mr.  Arthur  Vandenberg,  Jr.,  who  is  working  over  it  for 
publication.  I  don't  think  it  would  be  reasonable  you  should  pull  the 
whole  diary  out  of  his  hands.  I  think  it  should  be  for  specific  days, 
February  5, 1949.  Then  when  it  was  published  in  the  Herald  Tribune 
I  suggest  you  send  for  a  photostatic  copy  of  that  page.  I  would  think 
that  would  be  a  better  procedure. 

Mr.  Morris.  The  whole  thing  is  within  the  scope  of  the  committee, 
and  any  individual  item  can  then  be  brought  into  the  record.  In  this 
case  if  it  is  the  one  particular  conference  we  can  use  that. 

Senator  Smith.  He  was  talking  about  the  inconvenience  to  Mr. 
Vandenberg. 

Mr.  Stassen.  Yes ;  plus  the  matter  of  reasonableness  of  asking  for 
the  diary  for  a  whole  period.  The  same  thing  is  true  for  the  For- 
restal diary.  I  think  those  dates  around  November  1948  and  things 
like  that  we  know  from  the  published  diary  are  significant,  and  it 
would  be  important  to  have  someone  look  at  the  original  Forrestal 
diary  in  this  period. 

I  notice  in  Mr.  Acheson's  most  recent  press  statement  where  he  now 
admits  the  correctness  of  the  question  I  posed  to  him  on  October  2  when 
their  Department  had  first  denied  he  knew  anything  about  such  a 
conference.  In  the  most  recent  press  release  he  says  Mr.  Forrestal,  on 
February  2,  1949,  had  brought  the  matter  to  the  National  Security 
Council.  Mr.  Forrestal  was  notified  that  his  resignation  was  going  to 
be  accepted.  He  got  the  notice  on  January  28  of  1949.  So  I  would 
think  that  period  and  in  view  of  all  the  other  revelations  of  mistaken 
press  releases  from  the  State  Department,  Mr.  Forrestal's  diary  ought 
to  be  collected  very  carefully. 

Mr.  Morris.  If  we  have  these  legally  within  the  jurisdiction  of  the 
committee,  then  we  may  take  any  one  particular  item  we  wish.  That 
is  why  we  have  it  over  a  long  period. 

Mr.  Stassen.  The  committee  decisions  are  your  decisions,  but  I 
want  to  make  it  clear  my  suggestion  was  that  you  ask  for  Senator 
Vandenberg's  diary  of  February  5,  1949,  which  corroborates  the 
essential  basic  policy  facts  of  my  original  recollection  of  what  Sena- 
tor Vandenberg  told  me,  but  which  did  not  indicate  who  was  present. 

Senator  Smith.  Do  you  have  any  opinion  as  to  whether  or  not  the 
speech  of  Secretary  Acheson  of  January  5,  1950,  in  which  he  outlined 
the  defense  perimeter,  did  not  extend  to  Formosa  and  Korea,  and 


INSTITUTE    OF   PACIFIC   RELATIONS  1277 

maybe  he  mentioned  Hong  Kong  or  some  other  island— do  you  think 
that  had  any  effect  on  the  Communists  moving  into  Korea? 

Mr.  Stassen.  Senator,  as  a  witness  I  would  prefer  not  to  endeavor 
to  give  conclusions  but  more  to  confine  myself  to  facts.  There  are 
other  occasions  when  I  think  I  can  properly  draw  inferences  and 
discuss  conclusions,  but  I  don't  think  this  is  one  of  them. 

Senator  Smith.  Senator  Ferguson. 

Senator  Ferguson.  I  have  no  questions. 

Mr.  SouRwiNE.  No  questions,  Mr.  Chairman. 

Mr.  Stassen.  I  might  say  on  the  other  question  that  arose  out  of 
your  subpena  of  me  obliquely  the  matter  of  February  5,  1949,  confer- 
ences, and  then  the  entire  question  of  Mr.  Jessup,  that  we  are  pursuing 
our  investigation  of  those  points.  The  may  lead  to  further  testimony 
before  the  Sparkman  committee  next  week. 

Senator  Ferguson.  May  it  be  understood  if  the  Governor  finds  in 
a  resurvey  of  these  documents,  since  he  just  had  overnight  to  look 
into  them,  that  he  wants  to  put  something  else  into  the  record  that 
he  may  do  so  ? 

Mr.  Stassen.  I  would  put  it  the  other  way.  If  you  hear  from  any 
other  witnesses  that  cause  this  committee  to  have  any  doubt  of  the 
accuracy  and  fairness  of  what  I  have  testified  to,  then  I  would  respond 
to  your  summons  to  return  to  you.  These  are  very  grave  matters  of 
policy.  I  opened  them  in  the  first  instance  on  your  subpena  because 
of  my  grave  concern  for  our  country's  future.  I  will  continue  to 
function  as  close  to  that  as  I  possibly  can  in  the  buffeting  situation 
that  naturally  arises  in  the  country  at  this  period. 

Mr.  Morris.  Mr.  Chairman,  Professor  Colegrove  did  not  receive 
a  copy  of  the  transcript  until  between  10  and  10 :  30"  this  morning. 
He  is  now  here.    When  is  it  your  wish  to  hear  him  ? 

Senator  Smith.  We  will  recess  until  2 :  30  and  hear  him  then. 
(Whereupon,  at  12 :  30  p.  m.  Friday,  October  12,  1951,  the  hearing 
was  recessed  until  2 :  30  p.  m.  of  the  same  day.) 

afternoon  session 

Senator  Smith  (presiding) .  The  hearing  will  come  to  order.  Pro- 
ceed, Mr.  Morris. 

Mr.  Morris.  I  think  we  might  have  the  witness  sworn,  although  he 
had  been  sworn  before. 

Senator  Smith.  You  solemnly  swear  the  testimony  you  are  about  to 
give  in  this  hearing  of  the  Judiciary  Committee  of  the  United  States 
Senate  will  be  the  truth,  the  whole  truth,  and  nothing  but  the  truth, 
so  help  you  God  ? 

Mr.  Colegrove.  I  do.     . 

TESTIMONY  OF  KENNETH  C.  COLEGROVE,  NORTHWESTERN 
UNIVERSITY,  EVANSTON,  ILL. 

Mr.  Morris.  I  would  like  the  record  to  show  that  Professor  Cole- 
grove was  called  last  night  and  asked  to  come  down  here  and  testify  in 
connection  with  the  transcript  released  by  the  State  Department 
yesterday. 


1278  INSTITUTE   OF    PACIFIC   RELATIONS 

Professor  Colegrove  traveled  all  night  and  did  not  see  the  transcript 
until  10  o'clock  this  morning. 

I  would  like  the  record  to  show  that  at  the  outset. 

Professor,  did  you  testify  before  this  committee  on  the  25th  of 
September  1951? 

Mr.  Colegrove.  Yes,  Mr.  Morris. 

Mr.  Morris.  Did  you  testify  on  that  occasion.  Professor,  that  there 
was  a  group  present  at  the  3-day  round  table  conference  at  the  State 
Department  that  was  "sympathetic  to  Red  Cliina,"  that  this  group 
dominated  the  conference? 

Mr.  Colegrove.  Yes,  Mr.  Morris.  That  is  in  the  record.  I  so 
testified. 

By  using  that  term,  I  did  not  say  any  of  these  gentlemen  were  Com- 
munists.   I  said  their  advice  was  pro-Communist. 

Mr.  Morris.  I  used  your  words  there.  Professor  Colegrove. 

You  said  on  page  1719 : 

I  felt  that  the  group  that  was  sympathetic  to  Red  China  dominated  the  con- 
ference. 

Mr.  Colegrove.  That  is  the  fact. 

Mr.  Morris.  Professor,  have  you  had  an  opportunity  to  examine 
the  transcript  and  are  you  in  a  position  to  state  now  whether  or  not 
the  transcript  does,  in  effect,  show  that  was  the  case? 

Mr.  Colegrove.  Mr.  Chairman,  I  have  examined  the  transcript  as 
rapidly  as  I  could  since  10  o'clock  this  morning,  at  the  same  time 
listening  to  Governor  Stassen  as  he  testified.  It  appears  to  me  that  my 
testimony  is  consistent  with  the  transcript. 

I  might  also  add  that  the  brilliant  testimony  of  Governor  Stassen 
this  morning  was  also  consistent  with  the  transcript. 

Mr.  Morris.  Professor  Colegrove,  you  testified  that  in  that  group 
that  did  dominate  the  conference.  Prof.  Owen  Lattimore  was  the  leader 
of  that  group  ? 

Mr.  Colegrove.  Yes. 

Mr.  Morris.  Have  you  checked  on  that  fact  ? 

Mr.  Colegrove.  Yes;  I  have  checked  on  that  fact,  Mr.  Counsel. 
My  first  impression  is  also  my  second  impression :  that  Owen  Latti- 
more was  the  leader  of  the  group  well  admitted  by  Mr.  Kosinger. 

Mr.  Morris.  Is  there  anything  you  can  point  out  to  us  at  this  time 
to  support  that  testimony  where  Governor  Stassen  this  morning  noted 
that  Lattimore  had  spoken  19  times  at  the  conference?  Have  you 
made  any  such  check  ? 

Mr.  Colegrove.  Yes ;  I  checked,  too.  I  thought  that  Governor 
Stassen 's  checking  was  correct.  I  believe  that  Governor  Stassen  indi- 
cated that  the  group  which  gave  pro-Communist  advice  includes  Latti- 
more, Eosinger,  Professor  Peffer,  William*  S.  Robertson,  Professor 
Reischauer,  and  Benjamin  Kizer. 

Mr.  Morris.  Professor,  would  it  not  be  better  if  we  took  the  group 
you  mentioned  in  your  testimony,  and  I  will  ask  you  questions  and 
find  out  whether  or  not  the  testimony  actually  supports  your  testimony 
on  that  occasion.    May  I  do  it  that  way  ? 

Mr.  Colegrove.  Yes, 

Mr.  Morris.  The  purpose  is  to  determine — your  testimony  concides 
with  the  transcript.    May  I  follow  your  open  testimony  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1279 

Mr.  CoLEGROvE.  Yes. 

Mr.  ]MoRRis.  I  have  here  page  1716  of  your  open  testimony.  Senator 
Eastland  says : 

Who  was  that  group? 

That  is,  the  group  sympathetic  to  Communist  China. 

Mr.  CoLEGRovE.  I  would  say  the  leader  of  that  group,  if  you  considered  he  was 
a  leader,  was  Professor  Lattimore. 

May  we  address  ourselves  to  that?  I  will  go  into  the  other  names 
as  they  come  up. 

Mr.  CoLEGROvE.  I  checked  the  transcript,  and  I  would  agree  that 
the  statements  which  Mr.  Lattimore  made  in  the  conference  indicate 
that  his  views  were  consistently  pro-Communist,  and  this  advice  was 
given  on  a  number  of  occasions. 

Senator  Smith.  When  you  refer  to  the  transcript,  you  mean  the 
State  Department  transcript  ? 

Mr.  CoLEGROVE.  Yes.     Of  the  conference. 

The  statement  by  Mr.  Lattimore  in  volume  3,  page  C-2,  which  reads : 

On  the  other  hand,  too  much  delay  might  have  a  deteriorating  effect  on  our 
prestige  in  Asia — 

he  is  asking  for  early  recognition. 

Mr.  Morris.  Of  Communist  China  ? 

Mr.  CoLEGROVE.  Yes.  I  won't  read  the  whole  passage,  but  the  record 
of  the  State  Department  conference  indicates  that  Mr.  Lattimore  was 
in  favor  of  very  early  recognition  of  Red  China. 

There  are  quite  a  number  of  references  that  could  be  made  to  Mr. 
Lattimore's  testimony,  but  I  think  that  is  sufficient. 

Mr.  Morris.  You  also  put  in  this  group,  Lawrence  K.  Rosinger  ? 

Mr.  CoLEGROVE.  Yes. 

Mr.  Morris.  Have  you  had  a  chance  to  look  at  the  transcript  to 
determine  whether  or  not  Lawrence  Rosinger  did  take  the  position  you 
have  testified  in  open  session  ? 

Mr.  CoLEGROVE.  Yes,  Mr.  Counsel.  Mr.  Rosinger,  in  volume  3 
[October  8,  1949],  page  C-10,  used  the  following  words: 

I'd  like  to  associate  myself  with  the  view  frequently  expressed  around  this 
table  that  we  should  extend  recognition. 

He  means  to  Red  China.     [Continues  reading:] 

My  own  personal  feeling  is  that  the  recognition  should  come  as  early  as 
possible — 

he  then  says. 

Then,  on  page  59,  he  again  repeats : 

As  I  have  suggested,  the  recognition  should  come  at  the  earliest  feasible 
moment. 

On  the  same  page,  Mr.  Rosinger  proposes  that  we  should  end  all 
ECA  assistance  to  the  Chinese  Nationalists  immediately.  You  recall 
from  the  testimony  he,  of  course,  made  a  strong  plea  for  breaking 
the  Nationalist  blockade  of  Shanghai. 

There  are  numerous  other  references;  but,  since  Governor  Stassen 
covered  the  same  material,  it  would  be  repetitious  to  give  the  whole 
list. 

2284S— 52— i)t.  3- 3 


1280  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Morris.  You  say  the  third  person  you  put  in  that  group  with 
the  qualification  more  or  less  was  Prof.  John  K.  Fairbank.  You  said 
he  was  more  or  less  in  that  particular  prevailing  group  ? 

Mr.  CoLEGROVE.  Yes. 

Mr.  Morris.  Could  you  dwell  upon  that  ? 

Mr.  CoLEGROVE.  I  included  John  K.  Fairbank  in  this  list.  I  believe 
that  Governor  Stassen  did  not  include  him  in  his  entire  list.  Let  me 
call  attention  to  Fairbank's  proposal  to  abandon  Formosa.  That  is 
made  in  volume  1,  pages  B-10  and  B-11.  Would  you  want  me  to  read 
that? 

Mr.  Morris.  If  you  will,  please,  Professor. 

"When  Professor  Colegrove  testified  in  open  session,  he  did  not  have 
the  benefit  of  any  notes  or  any  transcript,  Mr.  Chairman. 

Senator  Smith.  You  are  trying  to  confirm  what  he  said  by  the 
transcript  from  the  State  Department? 

Mr.  Morris.  We  are  asking  him  if  iiow  that  he  sees  the  transcript 
does  it  bear  out  his  recollection  of  the  meeting  as  he  testified  in  open 
session  on  September  25,  1951.  He  had  testified  previously  in  execu- 
tive session. 

Mr.  Colegrove.  I  dislike  to  take  the  time  of  the  committee  in  check- 
ing my  notes  here.  I  have  had  only  2  hours  to  go  over  this.  I  fear 
that  I  have  made  an  error  in  my  notations  in  regard  to  volume  No.  1, 
pages  B-10  and  B-11. 

Mr.  Morris.  Was  there  a  reference-  to  Formosa,  Mr.  Mandel  ? 

Mr.  Colegrove.  If  one  of  my  students  at  the  university  made  notes 
such  as  I  have  here,  I  would  flunk  him. 

I  guess  this  is  volume  2.  . 

Senator  Smith.  I  can  testify  for  you.  There  is  a  little  confusion 
the  way  these  volumes  are  numbered.  If  you  need  any  witness  to 
help  you  out,  let  me  know. 

Mr.  Colegrove.  I  must  say  the  State  Department  has  not  helped 
us  much  in  this  pagination. 

It  was  volume  No.  2  [October  G,  1949,  p.  m.  session]  page  B-10. 
Professor  Fairbank  says: 

To  try  to  hold  Formosa  with  troops  would  give  so  much  ideological  ammuni- 
tion to  the  Chinese  Communists  that  it  would  unite  China  more  readily  against 
US.     The  more  pressure  we  bring,  the  more  we  can  expect  hostility  in  return. 

Then  he  goes  on  on  the  next  page  to  say : 

To  hold  Formosa  would  defeat  our  ends  by  a  miscalculation  of  the  response 
in  China,  just  as  our  military  support  of  Chiang  Kai-shek  defeated  our  ends 
because  we  couldn't  foresee  his  inefficiency  and  that  Chiang  would  have  a  lack 
of  support. 

I  think  that  indicates  clearly  enough  that  Professor  Fairbank  was 
in  favor  of  immediate  abandonment  of  the  Nationalist  Government  on 
Formosa. 

Mr.  Morris.  Do  you  care  to  say  anything  more  on  that  score,  Pro- 
fessor Colegrove  ? 

Mr.  Colegrove.  I  don't  think  it  is  necessai^  to  take  the  time  of  the 
committee.  ^  There  are  other  citations  that  can  be  made,  but  that  is 
characteristic. 

Mr.  Morris.  Did  you  hear  the  testimony  of  Mr.  Stassen  this 
morning? 

Mr.  Colegrove.  Yes.  I  listened  to  that  testimony.  I  thought  that 
was  an  excellent  analysis. 


INSTITUTE    OF   PACIFIC   RELATIONS  1281 

Mr.  Morris.  Would  that  confirm  the  testimony  that  you  gave  in 
open  session  here  ? 

Mr.  CoiiEGROvE.  Decidedly  so.  I  thought  everything  that  Governor 
Stassen  testified  to,  this  moiling,  completely  corroborated  my  testi- 
mony when  I  first  appeared  before  this  committee. 

Mr.  Morris.  In  other  words,  you  feel  that  your  testimony  and  his 
originally  was  very  much  along  the  same  lines  ? 

Mr.  Colegrove.  Yes. 

Mr.  Morris.  You  heard  him  give  instances  from  the  transcript  today 
in  support  of  his  testimony  and  you  feel  they  also,  ipso  facto,  would 
support  yours? 

Mr.  Colegrove.  Yes. 

Mr.  Morris.  You  say,  on  page  1716 : 

To  some  extent  Professor  Reischauer  of  Harvard  and  Professor  Peffer  of 
Columbia  University  expressed  views  that  vpere  favorable  to  the  Chinese 
Communists. 

Mr.  Colegrove.  As  to  the  views  of  Professor  Reischauer,  I  must 
say  that  I  regretted  to  find  that  he  and  I  differed  so  frequently.  We 
are  graduates  from  the  same  university.  Professor  Reischauer  took 
the  position  on  October  7,  1949,  at  the  morning  conference,  on  page 
C-15,  where  he  uses  these  expressions : 

I  VFOuld  certainly  agree  with  Mr.  Rosinger  about  the  importance  of  deeds. 

He  is  referring  here  to  the  abandonment  of  the  Nationalist  Govern- 
ment on  Formosa. 

I  think  that  was  somewhat  typical  of  all  of  the  testimony  of  Pro- 
fessor Reischauer. 

Mr.  Morris.  Did  you  hear  Governor  Stassen's  testimony  this  morn- 
ing about  Professor  Reischauer  ? 

Mr.  Colegrove.  Yes ;  I  did. 

Mr.  Morris.  You  mentioned  that  Benjamin  Kizer  of  the  west  coast 
generally  was  in  that  group.  Have  you  been  able  to  find  anything  in 
the  transcript  that  would  support  your  testimony  along  those  lines, 
Professor  ? 

Mr.  Colegrove.  Yes,  Mr.  Counsel.  Benjamin  Kizer,  on  October  7, 
1949  [a.  m.  session],  on  page  B-23,  used  the  following  expression: 

I  tend  to  go  along  with  what  Mr.  Peffer  has  well  said,  not  that  we  should  go 
whole  hog  in  recognition — neither  Mr.  Peffer  nor  myself  meant  that — but  when 
it  becomes  apparent,  as  I  think  it  has  become  apparent  in  Indochina,  that  the 
days  of  France  are  numbered,  and  that  the  revolution  is  on  its  way  toward  con- 
trol, we  ought  to  be  sensitive  and  not  take  sides  in  any  such  situation. 

In  other  words,  he  is  arguing  for  recognition  of  the  revolutionary 
government  as  soon  as  possible. 

Mr.  Morris.  Is  there  anything  else  you  would  like  to  have  us  take 
notice  of  on  that  score  ? 

Mr.  Colegrove.  I  thought  that  characteristic  of  Mr.  Kizer's  state- 
ment. I  have  not  had  opportunity  to  check  every  one  of  them.  That 
is  the  only  one  I  have  been  able  in  my  limited  time  to  select. 

Mr.  Morris.  Mr.  Chairman,  we  are  confronted  with  tlib  problem  of 
what  to  do  about  this  transcript.  Should  we  put  that  all  in  our  record, 
the  entire  transcript  ? 

Senator  Smith.   You  mean  the  State  Department  transcript? 

Mr.  Morris.  Yes. 


1282  INSTITUTE   OF   PACIFIC   RELATIONS 

Senator  Smith.  It  will  be  available  to  be  included.  Why  do  we 
not  consider  that  the  transcript  is  available  for  the  record  if  and  when 
it  is  decided  it  should  be  put  in?  We  can  treat  it  as  we  treated  those 
other  volumes.     We  will  not  actually  copy  it  into  the  record. 

Mr.  Morris.  In  fairness  to  everybody,  Mr.  Chairman,  the  whole 
transcript  of  what  everybody  said  should  be  in  our  records. 

Senator  Smith.   You  mean  the  State  Department  transcript? 

Mr.  Morris.  Yes.  That  does  not  mean  that  we  have  to  print  it  here 
in  the  first  instance. 

Senator  Smith.  All  right. 

(The  material  referred  to  appears  in  the  appendix  of  this  part.) 

Mr.  Morris.  I  think  we  sliould  have  everybody's  remarks  in  the 
record. 

Another  point  in  your  open  testimony.  Professor,  you  said  that  a 
briefing  done  by  Cora  Dubois  was  a  briefing  very  sympathetic  toward 
the  Communists.  Cora  Dubois  was  the  State  Department  officer  who 
briefed  the  conferees. 

Can  you  find  anything  there  in  the  testimony  to  support  that  testi- 
mony, Professor  Colegrove? 

Mr.  CoLEGRO^'E.  Mr.  Morris,  I  was  disappointed  in  the  briefing  by 
Dr.  Dubois.  Her  briefing  occurred  at  the  opening  of  the  second 
session. 

It  was  a  brilliant  and  scintillating  analysis  of  the  problem  situation 
in  southeast  Asia,  and  it  presented  to  the  uninitiated  every  appearance 
of  objectivity,  but  nevertheless  it  was  a  very  decided  slanted  testi- 
mony. 

Mr.  Morris.  Can  vou  develop  that  for  us? 

Mr.  Colegrove.  Yes.  The  briefing  played  down  Soviet  Russia  and 
the  Chinese  Communist  influence  in  southeast  Asia.  It  implied  that 
the  revolution  in  southeast  Asia  was  a  wholly  native  spontaneous  rev- 
olution with  no  leadership  from  the  Soviet  Russian  Government  or  Red 
(^hina. 

I  will  quote  you  from  volume  3  [October  7, 1949,  a.  m.  session  J ,  page 
A-3.     Dr.  Dubois  says  : 

Despite  the  diversity  which  does  occur  "in  Southeast  Asia,"  a  few  generali- 
zations, it  seems  to  me,  can  be  risked  The  first  and  the  broadest  is  one  which 
was  discussed  at  the  very  beginning  of  yesterday's  meeting  and  agreed  upon, 
namely,  that  there  is  a  revolution  in  progress  in  southeast  Asia,  and  that  that 
revolution  is  not  coevil  with  United  States-U.  S.  S.  R.  tensions.  It  is  a  revolution 
certainly  of  50  years'  duration. 

I  will  not  go  on  any  further. 

We  will  have  to  say  from  the  study  of  history  that  this  revolution 
was  also  going  on  in  China  probably  for  a  hundred  years,  the  T'ai  P'ing 
rebellion  and  the  revolution  under  Sun  Yat-sen. 

But  in  China,  everyone  would  agree  the  revolution  was  captured 
by  the  Chinese  Communists.  They  took  over  the  revolution,  Mao  Tze- 
tung  and  the  Chinese  Communists. 

In  this  briefing  that  Dr.  Dubois  made,  she  says  nothing  about  Ho 
Chi  Minh,  the  Moscow-trained  Chinese  Communists  who  has  taken 
over  revolution  in  the  Viet-Nam  in  Indochina.  I  was  amazed  at  a 
briefing  on  southeast  Asia  that  had  no  mention  whatsoever  of  the 
Chinese  Communist  leaders  whose  personalities  men  respect  as  great 
as  Mao  Tze-tung  and  who  directs  the  revolution  in  southeast  Asia. 
He  is  a  European,  Moscow  and  French-trained  Communist  and 
directs  that  revolution. 


INSTITUTE    OF   PACIFIC   RELATIONS  1283 

Mr.  Morris.  What  is  the  next  sentence,  there?     It  ahnost  negates 
its  existence,  does  it  not  ? 
Mr.  CoLEGROv'E.  You  mean  "it  has  affected  more  or  less     *     *     *"  ? 
Mr.  Morris  (reading)  : 

For  the  United  States  to  interpret  the  southeast  Asian  scene  solely  in  terms  of 
its  own  preoccupation  with  anticommunism  is  to  run  the  risk  of  seriously  mis- 
understanding the  forces  at  work  in  southeast  Asia  and  thereby  of  alienating 
the  all-important  leadership  of  the  area. 

Mr.  CoLEGROvE.  It  is  simply  amazing  that  statement  should  be  made 
of  what  was  supposedly  the  scholarly  presentation  of  the  situation. 

Again,  let  me  call  attention  to  page  A-19  where  the  briefing  refers 
to  the  United  States  and  Communist  China.  The  briefing  reads  as 
follows  : 

The  U.  S.  S.  R.  and  Communist  China  are  still  only  potential  forces  perhaps 
brighter  for  being  less  manifest — 

which  is  an  amazing  statement.  The  French  who  have  been  fighting 
the  Communists  in  Indochina,  I  think,  will  hardly  believe  an  American 
scholar  would  make  such  a  statement  as  that,  because  it  is  so  complet- 
ely in  disagreement  with  the  facts. 

Let  me  go  back  to  page  A-12.     On  page  A-12,  Dr.  Dubois  says : 

Communist  propaganda  from  Peiping  is  ineffective. 

Reports  that  we  have  from  the  press  indicate  the  propaganda  was 
effective  from  the  very  beginning,  the  beginning  of  the  so-called 
people's  govermnent  of  China. 

With  reference  to  this  briefing,  Mr.  Morris,  1  was  regretful  to  see 
Dr.  Dubois  belittle  Governor  Stassen's  proposal  of  a  propaganda  cen- 
ter in  Bangkok.  That  was  an  important  feature  of  the  program  which 
Governor  Stassen  laid  before  the  conference.  This  proposal  is  ridi- 
culed in  this  briefing. 

I  think  I  need  not  take  more  time  in  indicating  the  character  of  this 
briefing.    It  was  a  very  clever  statement  but  very  definitely  slanted. 

Mr.  Morris.  Mr.  Chairman,  if  the  entire  transcript  is  not  going  into 
the  record,  may  the  briefing  go  in  the  record  ? 

That  runs  no  more  than — how  many  pages? 

Mr.  CoLEGROVE.  The  conversation  about  it  runs  26  pages. 

Senator  Smith.  You  mean,  to  be  copied  in  the  record? 

Mr.  Morris.  That  would  be  printed  in  the  record.  It  wouldn't  be 
printed  here.  We  will  lay  it  in  here,  because  when  these  hearings  are 
being  prepared,  it  will  be  printed. 

Senator  Smith.  All  right. 

(The  material  referred  to  follows:) 

Miss  DtTBOis.  Unfortunately  the  discussion  which  you  carried  on  yesterday 
seemed  to  me  so  lively  and  so  excellent  that  it  cut  the  ground  out  pretty  com- 
pletely from  under  this  briefing  paper  which  I  had  prepared.  I  shall  go  ahead 
with  it,  however,  largely  as  a  r6sum§  and  as  a  summary  of  most  of  the  points 
that  you  raised  yesterday  and  then  we  can  go  on  from  there. 

The  countries  of  Southeast  Asia  vary  so  greatly  that  it  seems  to  me  any 
estimate  of  that  or  any  specific  program  of  action  in  Southeast  Asia  which  can 
be  phrased,  which  is  phrased  for  the  region  as  a  whole,  will  need  reinterpreta- 
tion  when  applied  to  a  particular  country.  It  seems  to  me  that  a  simple  pro- 
gram or  estimate  for  Indonesia  and  Thailand  would  be  as  inappropriate  as  a 
single  estimate  or  program  for,  let's  say,  Korea  and  Japan.  The  differences 
are  of  that  magnitude. 

Despite  the  diversity  which  does  occur,  a  few  generalizations,  it  seems  to  me, 
can  be  risked.     The  first  and  the  broadest  is  one  which  was  discussed  at  the 


1284  INSTITUTE   OF   PACIFIC   RELATIONS 

very  beginning  of  yesterday's  meeting,  and  agreed  upon,  namely,  that  there 
is  a  revolution  in  progress  in  Southeast  Asia  and  that  that  revolution  is  not 
coeval  with  U.  S.-U.  S.  S.  R.  tensions.  It  is  a  revolution  certainly  of  50  years 
duration.  It  has  affected  more  or  less  acutely  all  functions  of  the  cultural  lives 
of  these  disparate  peoples.  Yet  it  is  a  revolution  which  has  not  always  been 
disorderly  and  simultaneously,  I  think  one  should  remember  in  dealing  with 
Southeast  Asia  that  not  all  disorders  are  necessarily  revolutionary.  For  the 
United  States  to  interpret  the  Southeast  Asia  scene  solely  in  terms  of 
its  own  preoccupations  with  anticommunism  is  to  run  the  risk  of  seriously 
misunderstanding  the  forces  at  work  in  Southeast  Asia  and  thereby  of  alienat- 
ing the  all-important  leadership  of  the  area. 

Fortunately  the  U.  S.  S.  R.  seems  to  be  making  this  very  error  in  Southeast 
Asia.  The  reasons,  we  may  assume,  are  the  doctrinaire  quality  of  its  Southeast 
Asian  advisers  who  impress  one  as  being  either  fairly  incompetent  or  too  in- 
timidating to  render  an  honest  judgment  on  the  scene. 

Now  the  revolution  which  is  taking  place  in  Southeast  Asia  can  be  sub- 
sumed under  three  major  blanket  terms :  Nationalism  in  its  political  thinking, 
socialism  in  its  economic  aspirations,  and  humanitarianism  in  its  social  pro- 
gram. These,  of  course,  are  direct  reflections  of  western  democratic  thought, 
although  certainly  their  appearance  in  contemporary  Southeast  Asia  lags  be- 
hind their  fullest  manifestations  in  Europe.  That  these  three  major  trends  are 
western  European  in  origin  gives  the  United  States  a  tremendous  psychological 
advantage  in  dealing  with  Southeast  Asian  leaders.  However,  I  think  it  would 
be  a  mistake  to  expect  no  mutations  in  these  major  trends  in  the  course  of  being 
transplanted. 

Thus,  the  nationalism  which  is  at  the  moment  the  major  preoccupation  is  still 
phrased  to  a  large  extent  as  ahtiimperialism.  Furthermore,  nationalist  leaders 
have  problems  of  unifying  the  nations  that  they  aspire  to  create  which  are  as 
great,  certainly,  as  our  forebears  had  in  the  eighteenth  century.  Sovereignty 
neither  in  its  internal  nor  external  aspects  is  yet  a  deeply  experienced  and 
internal  force.  I  would  expect,  therefore,  that  their  nationalism  would  be 
easily  directed  into  international  channels  as  soon  as  the  threats  of  imperialism 
are  removed  and  hypersensitivities  on  this  score  are  respected.  Once  unity  in 
these  severely  splintered  countries — and  I  exclude  the  Philippines  and  Thailand — 
is  established,  international  preoccupations  will  appear  more  consistently  and 
frequently.  However,  until  that  time  internal  problems  will  seem  more  urgent 
than  external  ones  in  each  of  these  countries.  This  complicates  the  situation. 
It  means  that  the  United  States  has  to  deal  with  five  or  six  separate  entities 
instead  of  one.  It  may  retard  cooperation  between  the  countries  of  this  area, 
and  then,  of  course,  there  is  the  danger  that  splintered  nations  may  more  easily 
be  exploited  by  those  who  enjoy  fishing  irresponsibly  in  troubled  waters. 

Socialism — to  take  the  second  main  theme  in  Southeast  Asia — is  still  more  an 
aspiration  than  a  fact.  It  is  closely  associated  with  the  desix-e,  however  unrealis- 
tic, to  industrialize  and  achieve  some  degree  of  autarchy.  In  part,  tliese  desires 
stem  from  the  realization  of  how  vulnerable  the  export  economy  developed  by 
European  nations  have  made  these  areas  to  fluctuations  in  the  world  market. 
I  need  scarcely  say  the  depressions  of  the  1930's  was  a  very  bitter  experience 
in  this  part  of  the  world.  Another  contributing  factor  is  the  knowledge  that  they 
lack  investment  capital  and  they  need  such  capital  from  European  sources,  but 
that  in  acquiring  it  they  do  not  wish  to  exchange  economic  controls  for  the 
political  freedom  which  they  have  just  acquired.  On  the  whole,  therefore,  the 
preference  is  for  intergovernment  loans  and  government-controlled  enterprises. 

The  third  main  strain  in  the  Southeast  Asian  revolution,  the  humanitarian 
one,  is  for  the  moment  represented  by  a  remarkable  eagerness  for  education  and 
for  the  development  of  literacy  in  the  area.  This,  of  course,  was  of  value  in 
the  European  nations  where  most  of  the  southeastern  leadership  studied.  It 
appears  to  them  a  sine  qua  non  of  intelligent  and  enlightened  sovereignty.  It  is 
a  force  which,  I  believe,  most  nearly  represents  a  mass  movement  in  contempo- 
rary Southeast  Asia  today.  That  highly  literate  populations  like  those  of  Ger- 
many and  .Tapan  have  been  no  insurance  against  political  abuse  seems  to  escape 
most  people's  attention. 

Associated  with  this  trend  is,  of  course,  the  desire  for  a  higher  standard  of 
living  and  great  admiration  for  American  technology.  I  feel  that  our  propa- 
ganda does  not  need  to  stress  our  technical  competence  or  our  standard  of  living 
anywhere  in  the  world.  It  has  already  been  sold  and  resold.  It  is  a  revolutionary 
force,  some  writers  claim,  which  makes  communism  a  pale  and  reactionary 
phenomenon  by  comparison.  Although  we  do  not  need  to  sell  the  superiority  of 
our  technology  it  may  be  wise  of  us  in  Southeast  Asia  not  to  rub  in  the  dif- 


INSTITUTE    OF   PACIFIC   RELATIONS  1285 

ferences  in  standards  of  livinfr.  and  above  all  not  to  appear  niggardly  in  sharing 
our  greatly  admired  know-how.  It  may  be  unwise  to  arouse  envy  and  unde- 
sirable to  trade  on  strength  which,  though  greatly  admired,  is  admired  in 
Southeast  Asia  when  well  encased  in  velvet. 

If  the  main  elements  then  of  the  Southeast  Asian  revolution  have  been  cor- 
rectly appraised,  the  next  question  which  arises  is,  "Where  are  the  fulcrums  for 
the  effective  exercise  of  influence  by  the  United  States?" 

In  terms  of  the  class  structure  the  major  locus  of  power  is  the  present  leader- 
ship. It  is  predominantly  western  educated  and  western  oriented  in  its  thinking. 
The  overt  leaders  who  fell  under  the  leadership  of  Moscow  and  remained  there 
can  be  counted  practically  on  the  fingers  of  both  hands.  Furthermore,  the  peasant 
masses  of  Southeast  Asia  are  still  largely  politically  unawakened,  although  that 
situation  is  changing  faster  than  we  may  like  to  realize  in  countries  like  Indo- 
china and  Indonesia,  which  have  had  to  fight  for  their  independence.  In  dealing 
with  these  leaders  we  shall  have  to  appreciate  that  they,  like  all  politicians,  will 
be  under  local  pressures  from  their  own  peoples,  which  we  here  in  the  United 
States  only  vaguely  understand  and  probably  frequently  do  not  appreciate.  We 
must  realize,  however,  that  the  greatest  danger  to  us  in  Southeast  Asia  is  that 
tlie  armed  and  aroused  peasants  may  escape  from  under  the  control  of  leaders 
essentially  friendly  to  the  west  and  become  the  pawns  of  Communist  agitators. 

An  early  and  equitable  settlement  of  disorders  in  Southeast  Asia  and  every 
effort  to  strengthen  the  present  leadership  in  its  unification  of  these  countries 
appears  to  me  to  be  an  essential  to  United  States  interests.  It  is  recognized 
that  such  leadership  may  not  always  be  to  our  taste,  however. 

A  second  point  d'appui  open  to  the  United  States  has  already  been  suggested. 
It  is  the  generous  sharing  of  our  technology.  Here  a  generous  technical  assistance 
program  was  conceived.  The  realization  by  our  economists  that  on  its  present 
scale  it  will  not  fundamentally  alter  even  in  a  generation  the  Southeast  Asian 
standard  of  living  had  led  to  the  suggestion  that  private  capital  is  needed  but 
naturally  it  must  be  provided  safeguards.  Actually  whether  such  safeguards 
will  coax  American  capital  into  underdeveloped  areas  may  be  worth  pondering. 
The  Bell  Act  which  has  been  a  thorn  in  Philippine  national  pride  has  not  deluged 
the  Philippines  with  American  enterprises.  In  any  event,  the  United  States 
with  its  evaluation  of  private  enterprise  runs  squarely  against  the  state  socialism 
of  Southeast  Asian  leadership.  Already  fears  have  been  expressed  in  the  region 
about  our  intentions  on  that  score.  Undoubtedly  to  secure  our  assistance  the 
Southeast  Asians  will  temporize  with  their  aspirations,  but  the  attendant 
frustrations  and  resentments  should  not  be  ignored,  should  be  carefully  weighed 
against  the  chances  of  success  in  getting  American  private  capital  into  the  area. 

A  third  and  closely  related  lever  available  to  the  United  States  in  Southeast 
Asia  is  the  previously  mentioned  desire  for  education.  The  Fulbright  Act  was 
probably  one  of  the  most  constructive  long-run  measures  for  Southeast  Asia 
enacted  in  postwar  years.  However,  it  is  limited  to  only  three  countries  in  the 
region,  it  has  been  slow  in  getting  under  way,  it  has  been  loosely  coordinated 
with  other  policies  subsequently  developed  like  the  technical  assistance  program, 
and  has  been  nibbled  away  by  other  interests,  lack  of  suitable  personnel,  and  the 
innumerable  difficulties  that  always  seem  to  beset  the  best  of  intentions.  The 
Fulbright  Act,  however,  is  miniscule  by  comparison  to  the  needs  and  aspirations 
of  these  areas.  I  feel  that  any  guidance  that  this  group  could  offer  in  refining 
and  enlarging  our  United  States  informational  and  educational  program  and  in 
enlisting  our  private  educational  groups  in  a  multitude  of  both  advanced  and 
elementary  programs,  an  education  might  be  amply  repaid  in  terms  of  long-run 
national  interests. 

Now  these  are  some  of  the  assets  we  possess  in  Southeast  Asia.  Where,  then, 
are  the  weak  points  in  our  potentialities?  Here  I  would  like  to  consider  two  types 
of  weaknesses,  those  which  are  inherent  in  Southeast  Asia  and  those  which  are 
inherently  our  t)wn. 

It  seems  a  .iustifiable  assumption  that  the  Chinese  Communists  will  continue 
their  push  into  the  neighboring  countries  of  Southeast  Asia.  What  their  reactions 
will  be  will  depend  upon  the  nature  of  the  push.  Let  us  suppose  that  it  would 
be  directly  military  and  would  he  limited  to  the  land  approaches. 

Mr.  Furnivall.  an  outstanding  British  expert  sympathetic  to  the  present 
Burmese  Government,  is  convinced  nothing  would  heal  the  present  schisms 
in  Burma  more  effectively  than  an  armed  Chinese  incursion  along  the  northern 
Sino-Burmese  border. 

In  Indochina  the  dislike  of  the  Chinese  is  traditional.  It  has  been  reinforced 
by  the  postwar  Chinese  occupation  of  northern  Indochina.  Any  Vietnamese 
Communist  leadei'ship  in  the  Republic  of  Vietnam  which  would  encourage  or 


1286  INSTITUTE    OF   PACIFIC   RELATIONS 

condone  Chinese  military  incursions  would  be  widely  discredited  and  might  make 
more  friends  for  Bao  Dai  than  the  French  or  the  Emperor  himself  have  yet  been 
able  to  win. 

Thailand's  traditional  nationalism  and  anti-Chinese  position  is  presently  more 
overt  than  ever  under  the  authoritarian  Premier  Phibul.  In  fact,  I'hibul  has 
recently  stated  that  Thailand  would  welcome  British  and  American  troops  on 
Thai  soil  in  the  event  of  a  Communist  invasion. 

All  of  these  factors  are  not  unknown  to  the  Chinese  Communists  and  it  seems 
improbably,  therefore,  that  they  would  take  the  risks  involved  in  direct  military 
action  even  though  they  might  be  militarily  successful.  Also,  it  is  still  far  from 
clear  that  the  U.  S.  S.  R.  trusts  the  Chinese  Communists  sufficiently  to  use  them  as 
their  "running  dogs"  in  Southeast  Asia. 

Obviously,  however,  direct  military  incursion  is  not  the  only  instrument  at  the 
disposal  of  the  Chinese  Communists.  Chinese  governments  have  traditionally 
taken  a  proprietary  attitude  toward  their  6,000,000  overseas  Chinese  in  Southeast 
Asia.  Such  attentions  have  never  been  welcomed  by  the  government  of  any 
region.  Among  the  people  of  the  area,  .justly  or  unjustly,  the  Chinese  have  always 
been  suspect.  This  position  is  intensified  at  present  for  the  Chinese  have  held 
aloof  from  the  nationalist  struggle.  The  increased  nationalist  sensitivities  in 
these  countries  since  the  war  is  likely  to  make  Chinese  Communists'  appeals  to 
their  overseas  dependents  as  obnoxious  as  those  of  Nationalist  China.  This, 
however,  is  certainly  no  adequate  discouragement  to  the  Chinese  Communists. 

If  no  direct  military  action  is  likely,  what  are  the  Chinese  Communist  poten- 
tials? Opening  propaganda,  which  has  already  been  launched  from  Peiping  on 
Southeast  Asia  will  undoubtedly  be  intensified,  but  in  my  estimation  it  is  of 
dubious  effectiveness.  I  suspect — and  this  is  highly  Intuitive  judgment — that 
shrill  propaganda  may  be  one  of  those  self-defeating  techniques  whose  effective- 
ness is  already  largely  exhausted.  However,  it  may  be  unwise  to  underestimate 
it  too  soon  at  least  in  these  so-called  marginal  areas  of  the  world,  but  our  own 
information  services,  expanded,  more  astute — certainly  more  repetitive — would 
probably  stalemate  the  line  coming  out  of  Moscow  and  Peiping. 

Far  more  sinister,  it  seems  to  me,  tire  the  possibilities  of  clandestine  infiltration 
,tnd  activities  whose  goal  will  be  to  intensify  destructively  every  possible  griev- 
ance, racial  discrimination,  minority  frictions,  pay  differentials,  poverty,  police 
measures,  national  aspirations,  and  that  whole  host  of  evils  which  exist  today 
in  Southeast  Asia. 

These  clandestine  efforts  will  certainly  be  facilitated  if  the  countries  of 
Southeast  Asia  will  recognize  the  Peoples  Republic  of  China.  Chinese  Com- 
munists diplomats  will  afford  the  opportunity  to  shout  at  clandestine  operators, 
to  bribe  and  to  terrorize  the  resident  Chinese  in  Southeast  Asia  who  have  always 
been  noted  for  their  practicality  in  such  matters  rather  than  for  the  strength 
of  their  moral  convictions.  Furthermore,  to  the  extent  that  the  Peoples  Republic 
of  China  gains  a  position  on  the  international  forum  its  strident  eachoes  of  the 
U.  S.  S.  R.  on  the  subject  of  Anglo-American  imperialism  will  have  the  weight 
of  an  Asian  voice  which  has  been  "successful"  in  its  revolution.  I  think  that 
we  should  not  underestimate  the  fact  that  the  Communist  success  in  China  is 
seen  as  a  successful  revolution  in  many  parts  of  Asia.  It  seems  to  be  that 
in  a  case  of  that  sort  on  the  international  forum  our  best  defense  will  be  the 
kind  of  diplomatic  astuteness  which  Mr.  Henderson  has  had  in  India  and  above  all 
our  actual  record  about  which  it  seems  to  me  we  insist  on  being  far  too 
modest. 

In  my  opinion  this  question  of  the  overseas  Chinese  and  the  opportunity  they 
offer  Communist  China  for  clandestine  and  diplomatic  infiltrations  in  Southeast 
Asia  is  one  of  the  greatest  hazards  to  United  States  interests  in  the  area.  Un- 
fortunately, in  terms  of  other  considerations,  recognition  may  have  to  be  granted 
to  the  Peoples  Republic  and  the  attendant  liabilities  reckoned  with. 

In  addition  to  the  difficulties  posed  by  the  overseas  Chinese  and  the  recogni- 
tion of  Communist  China  which  are  immediate  there  are  long-range  difficulties. 
The  population  problem,  particularly  in  relation  to  the  food  supply,  is  perhaps 
one  of  the  major  ones.  The  Far  East  as  a  whole  occupies  a  unique  position 
in  world  economies  by  being  predominantly  agricultural,  and  yet  being  on  the 
whole  a  food-deficit  area.  Based  with  this  gross  problem  the  impulse  is  to  en- 
courage rice-producing  areas  like  Thailand  to  produce  as  great  as  exportable 
surplus  as  possible.  If  the  Office  of  Intelligence  Research  estimates  are  correct 
there  is  little  likelihood  that  any  foreseeable  amount  of  encouragement  to  rice 
production  will  result  in  more  rice  than  the  Far  East  can  sell  at  a  good  price  until 
1960.    However,  by  1970  it  is  estimated  the  population  and  food  production  may 


INSTITUTE    OF   PACIFIC   RELATIONS  1287 

once  more  be  unbalanced  as  they  are  today.  It  is  also  estimated  that  the  Chinese 
Communists  will  still  be  in  control  in  China  in  1970.  It  is  here  again  that  bold 
new  plans  seem  as  urgent  to  the  United  States  interests  as  they  are  urgent  to 
Asian  leadership. 

Here,  perhaps,  modest  industrialization  and  economic  diversification  might 
concern  us  with  equal  seriousness  and  simultaneously  with  the  food-population 
equation.  Certainly  in  an  area  as  large  and  diversified  as  Southeast  Asia  any 
simple  unilateral  approach  would  not  be  adequate. 

Now  it  is  not  my  function  to  dwell  elaborately  on  the  difficulties  inherent 
in  the  Southeast  Asian  scene.  It  may  be  more  appropriate  now  to  pass  on  to 
inherently  American  difficulties  when  we  operate  in  the  region.  The  first  two 
difficulties  seem  to  me  closely  related — indifference  and  commitments  elsewhere. 
At  the  beginning  of  World  War  II,  China  "specialists'  were  practically  a  dime 
a  dozen  compared  to  those  on  South  Asia.  Since  the  war  Japan  "specialists" 
seem  to  outnumber  even  those  on  China.  Persons  interested  in  the  Far  East  are 
termed  "specialists"  while  every  fifth  person  in  the  United  States  has  no  hesitancy 
about  speaking  authoritatively  on  Europe.  He  may  do  it  even  in  fluent  French  or 
German.  It  is  not  astonishing,  therefore,  that  in  both  our  war  and  peace  strategies 
our  concei-n  has  been  primarily  for  Europe.  It  is  undoubtedly  both  practically 
and  emotionally  an  area  requiring  urgent  and  vigorous  effort.  If,  however,  we 
are  not  to  go  on  waiting  for  crises  to  develop  before  we  become  aware  of  them 
it  will  be  necessary  to  act  like  the  U.  S.  S.  K.  on  a  global  basis.  In  respect  to 
Southeast  Asia  we  are  on  the  fringes  of  crisis.  The  initiative  I  consider  is 
still  narrowed  on  our  side.  Specifically,  what  this  may  mean  is  Will  the  United 
States — and  here  I  don't  mean  just  the  policy  makers — be  rich  enough  and  above 
all  willing  and  foresighted  enough  to  apply  preventive  measures  before  South 
Asian  opportunities  are  squandered? 

In  our  preoccupations  with  Europe  and  our  heavy  and  legitimate  responsi- 
bilities there  the  weight  of  European  arguments  may  cloud  our  .judgments.  For 
example,  the  interests  and  stability  of  France  and  the  Netherlands,  close  and 
familiar  as  they  are,  may  serve  to  throw  out  of  persiiective  our  very  real  inter- 
ests in  Indochina  and  Indonesia.  Traditionally  British  preeminence  in  South 
Asia  may  have  made  us  careless  of  developments  in  the  region. 

To  continue  with  this  weighing  of  Europe  versus  Asia,  the  question  of  the 
Pacific  versus  the  Atlantic  Pact  is  another  case  in  point.  If  the  Atlantic  Pact 
is  obviously  in  our  immediate  interest  is  a  Pacific  Pact  less  in  our  long-range 
interest?  Or,  to  narrow  the  matter  down,  can  we  judse  whether  military  sup- 
port to  the  Northeast  Asian  group,  Korea,  Formosa,  Japan,  and  the  Philippines 
is  more  effective  than  support  to  the  Southwest  Pacific  group,  Australia,  New 
Zealand,  the  Philippines,  perhaps  plus  other  commonwealth  nations?  Or, 
thirdly,  is  it  more  effective  to  support  the  more  nebulous  Indian  Ocean  bloc? 
Do  United  States  interests  lie  in  consolidating  the  Indian  Ocean  bloc  with  the 
two  Pacifiic  arcs  or  do  our  interests  lie  in  two  or  more  such  aggregations  in  the 
far  eastern  periphery?  If  one  or  the  other  courses  seems  wise  to  us  what 
means  can  be  applied  to  implement  them?  These  are  questions  which  I  assume 
this  group  will  discuss  in  the  course  of  the  day. 

In  discussing  United  States  weaknesses  in  the  Far  East  I  have  raised  two 
related  issues,  our  preponderant  interest  in  Europe  and  therefore  the  degree  to 
which  we  have  as  a  people  concentrated  our  eggs  in  one  basket. 

The  last  point  I  should  like  to  raise  in  respect  to  Southeast  Asia  is  even  more 
unabashedly  a  valued  judgment.  It  has  to  do  with  our  moral  leadership  in 
the  area.  If  we  wish  to  be  seriously  hard-headed  about  the  Southeast  Asian 
scene  it  is  necessary  to  realize  that  their  moral  values  are  still  potent  and 
prized  factors.  Their  leadership  was  primarily  trained  in  our  founding  faith. 
The  streets  of  Saigon  and  Batavia  were  plastered  with  slogans  from  Jefferson, 
from  Lincoln,  from  the  Declaration  of  Independence,  from  the  Constitution  and 
from  the  Atlantic  Charter  when  the  allied  troops  arrived  in  September  1945. 
In  our  commitments  to  Europe  and  our  antagonism  to  the  U.  S.  S.  R.  we  may 
appear  in  that  area  to  have  temporized  with  the  idealistic  and  perhaps  naive 
expectations  of  Southeast  Asians.  Whether  it  was  avoidable  or  unavoidable 
we  certainly  lost  much  of  our  influence  in  the  area.  Whether  or  not  we  per- 
sonally as  individuals  prize  our  traditional  morality  or  have  been  won  over 
to  real  politik  is  not  relevant  sociologically.  What  is  relevant  is  to  the  extent 
that  the  United  States  temporizes  with  its  own  principles  it  is  abandoning  an 
instrument  of  great  political  force  in  Southeast  Asia.  The  U.  S.  S.  R.,  were 
it  in  a  similar  position  of  active  responsibility,  would  undoubtedly  be  even  more 
gross  by  contrast,  but  so  far  we  are  in  Southeast  Asia,  at  least  to  some  extent. 


1288  INSTITUTE   OF    PACIFIC   RELATIONS 

We  have  the  initiative.  The  U.  S.  S.  R.  and  Communist  China  are  still  only 
potential  forces,  perhaps  brighter  for  being  less  manifest. 

This  much  is  clear :  Whatever  our  priorities  in  the  short  run,  however  coldly 
calculated  in  power  terms,  they  must  be  compensated  for  by  long-range  encour- 
agement, reassurances  and  planning  with  and  for  the  South  Asians  if  we  are  to 
counteract  Communist  intrusions. 

The  Chairman.  Thank  you  very  much,  Miss  DuBois. 

Mr.  Morris.  Professor,  did  you  testify  whatever  at  any  time  during 
your  open  session  testimony,  about  Ruppert  Emerson  ? 

Mr.  CoLEGROVE.  No.  I  never  mentioned  the  name  of  Prof.  Ruppert 
Emerson.  I  am  very  sure  that  I  did  not  hear  that  name  mentioned  by 
any  of  the  Senators  on  the  subcommittee. 

Mr.  Morris.  Mr.  Mandel,  have  you  prepared  a  careful  scrutiny 
of  Professor  Colegrove's  open  testimony  ? 

Mr.  Mandel.  Yes. 

Mr.  Morris.  Does  the  name  Ruppert  Emerson  appear  ? 

Mr.  Mandel.  It  does  not  appear  anywhere  in  his  testimony. 

Mr.  CoLEGRO\T..  I  was  amazed  to  have  a  deluge  of  letters  from  my 
colleagues  at  Harvard  University,  including  Professor  Emerson  him- 
self, bitterly  chiding  me  for  having  mentioned  his  name  as  a  member 
of  the  conlerence.  I  was  testifying,  Mr.  Morris,  with  a  list  of  the 
membership  before  me,  so  it  would  seem  almost  impossible  to  give  his 
name. 

Senator  Smith.  How  did  his  name  come  in? 

Mr.  Morris.  Considerable  ]Dress  report  the  next  day  reported  Pro- 
fessor Colegrove  said  Prof.  Ruppert  Emerson  was  among  the  pro- 
Chinese  Communist  group.  Professor  Emerson  wrote  a  letter  of  pro- 
test to  the  committee. 

We  informed  him  that  his  name  had  not  come  up  in  the  testimony 
and  that  we  would  put  the  letter  in  the  record  to  show  that  fact. 

Senator  Smith.  Do  you  know  how,  his  name  got  into  the  paper  ? 

Mr.  Morris.  Apparently,  it  must  have  been  a  mistake.  Professor 
Colegrove  wanted  the  record  to  show  he  did  not  mention  his  name.  We 
put  the  list  of  the  25  people  who  did  attend  the  conference  in  and  Rud- 
peit  Emerson's  name  was  not  on  that. 

Mr.  Colegrove.  It  was  not  a  mistake  in  the  record. 

Mr.  Morris.  No. 

Is  there  anything  else  about  your  testimony,  Professor  Colegrove, 
in  your  open  testimony?    I  have  tried  to  take  the  high  lights. 

Mr.  Colegrove.  Would  it  be  permissible,  Mr.  Chairman,  for  me  to 
make  a  few  remarks  reoardino-  mv  own  remarks  at  the  conference? 

Would  it  be  in  order  for  me  to  illustrate  the  reactions  to  some  of  my 
own  remarks  in  the  conference? 

Mr.  Morris.  Yes ;  I  think  that  is  appropriate.  In  other  words,  you 
want  to  show  that  your  testimony  concerning  your  own  remarks  at 
the  conference  was  borne  out  by  reading  the  transcript? 

Mr.  Colegrove.  Yes. 

In  the  first  session,  which  was  on  October  6,  1949,  page  D-10,  Mr. 
McNaughton,  who  was  one  of  the  members  of  the  conference,  made  a 
very  pessimistic  speech  in  which  he  said : 

I  think  we  are  all  washed  up  in  China. 

He  proposes  getting  out  of  all  of  China,  and  he  intended  to  include 
Formosa,  too.  That  gave  a  very  pessimistic  beginning  to  the  discus- 
sion. This  was  practically  at  the  beginning  of  the  conference,  be- 
cause others  agreed  with  him.    I  took  exception  to  this  view. 


INSTITUTE    OF   PACIFIC   RELATIONS  1289 

I  said : 

Dr.  Fosdick — 

who  was  presiding — 

I  would  not  agree  at  all  that  we  are  washed  up  in  China  nor  that  the  Nationalist 
Government  on  Formosa  is  washed  up. 

I  went  on  to  point  out  that  there  were  spots  of  resistance  in  China 
at  this  time,  and  I  called  attention  to  General  Chennault's  plan  for 
assisting  Chiang  Kai-shek  logistically  to  make  a  landing  on  Fukien 
and  the  continent  of  China  and  to  assist  the  elements  of  revolt  against 
the  Communists  there  existing. 

This  view  that  I  proposed  then  was  rather  warmly  condemned  by 
several  members  of  the  conference,  and  in  particular  by  Mr.  Murphy 
and  by  Owen  Lattimore. 

I  won't  go  into  the  quotations,  except  to  say  that  Mr.  Murphy 
and  Owen  Lattimore  at  very  considerable  length  took  exception  to 
my  proposal  that  we  give  military  aid  to  Chiang  Kai-shek  to  assist 
him  to  recover  the  southern  part  of  China  and  to  neutralize  the 
Chinese  Communists. 

At  this  point,  Mr.  Chairman,  I  suggested  to  the  chairman  of  the 
conference  that  the  conference  ought  to  have  a  briefing  on  the  military 
situation  in  China. 

Shortly  afterward,  we  were  given  a  briefing  by  an  officer — I  am  not 
sure  whether  he  was  from  the  Army  or  whether  he  was  from  the  Cen- 
tral Intelligence  Agency.    He  was  Colonel  McCann. 

At  another  point,  it  seemed  to  me  that  the  State  Department  was 
making  the  best  of  a  bad  situation  with  reference  to  the  withdrawal 
of  our  consulates  from  China. 

This  discussion  occurs  in  volume  1,  page  C-8.  It  involves  a  short 
controversy  between  myself  and  Mr.  Butterworth,  who  was  speaking 
for  the  State  Department  in  this  matter. 

It  seemed  to  me  that  the  withdrawal  of  our  consulates  in  China 
left  us  in  a  very  awkward  position.  We  lost  listening  posts.  There 
were,  of  course,  and  still  are,  adventurous  young  men  in  the  Foreign 
Service  who  would  have  been  willing  to  stay  on  and  try  to  serve  their 
Government  and  collect  information. 

Mr.  Morris.  This  came  up  in  the  transcript? 

Mr.  CoLEGROvE.  Yes.    This  comes  up  in  the  transcript. 

Discussion  begins  in  volume  1,  page  C-8. 

Again,  we  have  quite  a  number  of  facets  concerning  the  recogni- 
tion of  Red  China  in  volume  5,  page  B-4,  and  again  at  page  34,  covers 
part  of  this  controversy.  Let  me  read  one  section  here.  These  vol- 
umes are  not  easily  handled. 

The  question  has  arisen  with  reference  to  possible  recognition  of  Red 
China  de  facto  or  de  jure.  My  position  had  been  that  we  should  not 
accord  them  either  de  facto  or  de  jure  recognition.  A.t  the  same  time, 
however,  I  felt  that  the  situation  in  Japan  was  such  that  there  would 
have  to  be  eventually  some  trade  between  China  or  North  China  and 
Japan  because  Japan  has  been,  for  years,  dependent  upon  certain  re- 
sources from  Manchuria.  In  order  to  avoid  a  recognition  of  Red 
China  but  at  the  same  time  permit  trade  between  Japan  and  China, 
I  proposed  a  modus  vivendi  which  might  be  an  arrangament  from  day 
to  day,  week  to  week,  or  month  to  month,  for  exchange  of  raw  ma- 


1290  INSTITUTE   OF   PACIFIC   RELATIONS 

terials  and  finished  products  between  Manchuria  and  Japan  wiMiout 
recognition. 

In  the  matter  of  recognizing  Red  China,  I  tried  to  make  the  point 
that  recognizing  a  Communist  government  would  not  bring  about  the 
blessings  which  so  many  people  fondly  expected  to  accrue  from  such 
recognition.  Communist  countries  do  not  subscribe  to  the  underlying 
principle  of  our  international  society,  namely,  sanctity  of  treaties  and 
good  faith  in  observing  treaties. 

I  pointed  out  that  the  State  Department  itself  in  the  person  of  Chip 
Bohlen,  a  specialist  in  Russia,  had  indicated  that  the  philosophy  of 
Soviet  Russia  and  the  philosophy  of  Marxian  countries  was  such  that 
they  did  not  subscribe  to  the  sanctity  of  treaties. 

That  being  the  case,  what  advantage  could  there  be  from  recogni- 
tion of  a  country  which  would  not  admit  that  it  was  bound  by  laws 
of  international  law  ? 

Still,  again,  one  thing  that  amazed  me  in  this  conference  which  was 
on  China,  there  was  so  little  reference  to  the  traditional  American 
policy  in  Asia.    That  traditional  policy  Avas  the  open-door  polic3\ 

IMr.  Morris.  Is  this  your  conclusion  after  reading  the  transcript,  or 
just  your  recollection? 

Mr.  CoLEGROVE.  I  am  referring  to  my  argument  that  recognition  of 
Red  China  would  not  insure  that  the  open-door  policy  would  be  ob- 
served by  Red  China  and  it  was  useless,  therefore,  to  recognize  her, 
because  we  would  have  none  of  the  advantages  of  former  policy  which 
was  generally  accepted  by  the  nations. 

Mr.  Morris.  Does  the  transcript  bear  out  your  recollection  ? 

Mr.  CoLEGROVE.  Yes.    Do  you  want  me  to  read  it  ? 

Mr.  Morris.  No. 

Mr.  CoLEGROVE.  It  covers  pages  32  and  35. 

I  might  add,  Mr.  Morris,  it  is  also  carried  on  to  pages  68  and  69.  • 

Mr.  Morris.  You  testify  that  there  was  no  discussion  encouraging 
the  State  Department's  white  paper.  Does  reading  the  ti-anscript 
bear  out  that  testimony  ? 

Mr.  CoLEGROVE.  Mr.  Counsel,  I  was  looking  for  that  point  just  as 
the  hearing  began.  '  I  have  not  had  time  to  verify  all  of  these.  My 
recollection  was  that  Mr.  Jessup  or,  rather,  Mr,  Fosdick  who  pre- 
sided over  the  first  session,  told  the  conference  that  the  State  Depart- 
ment was  not  interested  in  getting  our  views  on  the  white  paper  of 
China. 

Mr.  Morris.  You  have  not  found  that  in  the  transcript  ? 

Mr.  CoLEGROVE.  I  have  not  found  it.  Probably  in  a  minute  or  two, 
I  could  find  it. 

Mr.  Morris.  You  can  point  it  out  to  us  later. 

Mr.  CoLEGROVE.  I  can  probably  find  it. 

Mr.  ]\IoRRis.  Are  there  any  other  points  in  your  testimony  that  are 
borne  out  by  the  transcript  ? 

Mr.  CoLEGROVE.  Mr.  Counsel,  there  is  nothing  else.  I  agree  heartily 
with  the  analysis  which  Governor  Stassen  made  this  morning. 

I  thought  that  analysis  was  very  complete  and  very  accurate. 

Mr.  Morris.  AYe  will  have  some  letters  to  go  into  the  record. 

Senator  Smith.  After  this  conference,  do  you  recall  that  you  or 
Governor  Stassen  discussed  this  meeting,  or  was  it  not  supposed  to 
be  discussed  publicly  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1291 

Mr.  CoLEGROVE.  It  was  not  supposed  to  be  discussed.  The  presiding 
officer,  Dr.  Fosdick,  the  first  morning,  indicated  that  the  discussions 
were  to  be  confidential. 

Senator  Smith.  At  or  about  that  time  there  were  a  great  many  other 
American  citizens  besides  Dr.  Jessup,  Dr.  Lattimore,  and  the  people 
there,  who  were  advocating  the  same  thing  they  were  advocating, 
were  there  not  ? 

Mr.  CoLEGROvE.  Yes. 

Senator  Smith.  In  other  words,  a  great  many  people  had  gotten, 
as  we  would  say  in  common  parlance,  disgusted  with  the  Nationalist 
Government  because  of  the  cliicanery  and  the  defaults  and  promises 
by  reason  of  embezzlements  and  those  things  ? 

Mr.  CoLEGROMs.  That  is  right. 

Senator  Smith.  Is  not  that  one  of  the  things  that  caused  some 
citizens  to  feel  that  the  Nationalists  could  not  be  trusted  any  more 
than  the  Communist  government  ? 

Mr.  CoLEGROVE.  I  felt  that  a  great  deal  of  what  was  said  about 
Chiang  Kai-shek  was  pure  propaganda. 

Of  course,  there  was  the  Chinese  squeeze.  The  Chinese  squeeze 
is  two  or  three  thousand  years  old.  I  may  say  in  talking  about  poli- 
tics that  in  Chicago  I  find  there  is  a  Chicago  squeeze,  too. 

Senator  Smith.  We  are  talking  about  Chinese  politics  now  ? 

Mr.  CoLEGROvE.  There  was  a  squeeze  in  Chicago  just  as  there  is  a 
Chinese  squeeze. 

Senator  Smith.  What  I  mean  is  this:  xVs  to  the  position  that 
you  took  a,nd  Governor  Stassen  took,  a  great  many  people  have  taken 
that  position,  and  likewise  a  great  many  people  have  taken  the  op- 
posite position. 

Mr.  CoLEGROvE.  Yes. 

Senator  Smith.  And  that,  in  itself,  does  not  mean  too  much  one 
way  or  another,  except  that  those  were  the  views  of  groups. 

Mr.  CoLEGREVE.  I  was  rather  surprised  when  I  came  to  Washington 
to  attend  this  conference  to  find  so  many  members  of  the  conference 
who  had  been  among  the  group  who  were  partly  responsible  for  the 
fall  of  Chiang  Kai-snek  and  the  victory  of  the  Communists. 

Senator  Smith.  All  right.  * 

Now,  did  you  feel  that  conference  was  rigged,  so  as  to  have  that 
type  or  that  group  predominate ?     Was  that  your  feeling  at  the  time? 

Mr.  CoLEGRO^^:.  Definitely,  Senator,  that  was  my  feeling.  I  thought 
the  conference  should  have  included  quite  a  number  of  men  who  were 
left  out,  but  who  were,  you  might  say,  in  favor  of  the  Chiang  Kai- 
shek  government,  men  like  Stanley  Hornbeck,  who  had  long  experi- 
ence, and  were  available,  or  men  like  William  McGovern,  or  Eugene 
Dooman,  or  a  Yale  professor  by  the  name  of  David  Rowe. 

I  expected  to  see  a  more  even  balance. 

Senator  Smith.  Did  you  have  the  feeling  at  that  time  that  those 
men  or  those  types  of  men  had  been  purposely  left  out  so  as  not 
to  have  a  full  argument  on  the  other  side  ? 

Mr.  CoLEGROVE.  Definitely  so. 

Senator  Smith.  Now,  did  you  have  any  specific  evidence  that  would 
justify  you,  other  than  just  the  general  feeling? 

Mr.  CoLEGROVE.  Well,  the  only  evidence  would  be  the  number  of  pro- 
Communist  experts  invited  to  the  conference  and  the  smallness  of 
Ihe  number  of  anti-Communist  experts  on  the  other  side. 


1292  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Smith.  Did  you  have  anything  further  ? 

Mr.  Morris.  That  is  all,  Mr.  Chairman. 

We  have  some  letters  I  would  like  to  introduce  into  the  record. 

Senator  Smith.  Will  you  identify  them  properly  ? 

Mr.  Morris.  Yes.  There  is  one  that  I  think  should  be  read,  Mr. 
Chairman,  because  it  bears  on  this. 

Senator  Smith.  There  is  one  other  question  I  wanted  to  ask  you, 
Mr,  Colegrove. 

Did  you  or  Governor  Stassen,  so  far  as  you  know,  make  any  public 
speeches  or  write  anything  in  magazines  or  newspapers  or  give  any 
press  releases  that  bore  out  your  ideas  about  this  situation;  without 
referring  to  the  conference,  I  meant  ? 

Mr.  Colegrove.  Oh,  yes,  very  frequently.  And  numerous  talks.  In 
numerous  talks  that  I  have  made  I  have  expressed  my  views,  with  ref- 
erence to  aid  to  the  Nationalist  Government. 

I  think  that  most  of  the  members  of  the  conference  never  quoted 
what  was  said  in  the  conference  until  some  of  us  were  asked  under 
oath  and  under  subpena  to  appear  before  this  committee  and  indicate 
what  the  discussions  were. 

Senator  Smith.  You  know,  there  is  such  a  thing  as  hindsight  and 
foresight,  and  I  was  just  trying  to  get  to  the  point  as  to  whether 
there  was  any  expression  by  you  or  Governor  Stassen  at  that  time 
that  would  indicate  that  that  was  then  your  opinion,  and  that  you  so 
expressed  it. 

Mr.  Colegrove.  Outside  the  conference? 

Senator  Smith.  Yes. 

Mr.  Colegrove.  Oh,  yes.  I  can't  speak  for  Governor  Stassen,  but 
I  would  say  his  numerous  speeches  reiterated  the  very  same  thing  he 
said  at  the  conference. 

And  I  am  sure  my  addresses  have  done  the  same  thing. 

Senator  Smith.  In  other  words,  it  is  possible,  though,  and  that 
is  what  I  was  pointing  up  to,  that  a  great  many  things  said  about 
Russia,  before  Russia  became  our  ally,  were  things  which  the  people 
recanted  after  Russia  became  our  ally,  and  then  when  it  became  the 
enemy  they  took  up  the  old  line. 

Mr.  Colegrove.   Yes,  that  commonly  occurs. 

Senator  Smith.  So  what  I  want  to  do  is  to  get  this  oriented  in  the 
light  of  what  was  the  condition  at  that  time. 

Mr.  Colegrove.  Well,  I  think  the  opinions  expressed  at  the  confer- 
ence were  frequently  and  publicly  expressed  by  almost  every  member 
of  the  conference. 

Senator  Smith.  Now,  then,  what  is  the  next  thing? 

Mr.  Morris.  Will  you  read  our  letter  of  October  5,  Mr.  Mandel? 

Mr.  Mandel.  This  is  a  letter  of  October  5,  1951,  to  Hon.  Dean 
Acheson,  Secretary  of  State: 

My  Dear  Mr.  Secretary:  Will  you  make  available  to  the  Senate  Internal 
becunty  Subcommittee  a  transcript  of  the  minutes  of  a  conference  held  by  the 
Jes^p  Commission,  presided  over  by  PhiUp  C.  Jessup,  on  September  14,  1949, 
m  Washington,  at  which  were  present  Messrs.  Meaney,  Delanv,  and  Lovestone 
of  the  American  Federation  of  Labor,  and  Messrs.  Carev  and  Ross  of  the  CIO? 

Your  cooperation  in  this  matter  will  be  appreciated 
Sincerely, 

Pat  McCarran,  Chairman. 


INSTITUTE    OF   PACIFIC   RELATIONS  1293 

Letter  of  October  11,  1951,  on  letterhead  of  the  Department  of 
State : 

My  Dear  Senator  McCakuan  :  I  have  your  letter  of  October  5  to  the  Secretary 
requesting  "a  transcript  of  the  minutes  of  a  conference  held  by  the  Jessup  Com- 
mission, presided  over  by  Pliilip  C.  Jessup,  on  September  14,  1!J49,  in  Washington, 
at  which  were  present  Messrs.  M^aney,  Delany,  and  Lovestone  of  the  American 
Federation  of  Labor,  and  Messrs.  Carey  and  Ross  of  the  CIO." 

No  stenographic  transcript  of  this  meeting  was  made,  but  the  Department's 
files  do  contain  a  four-page  summary  record  of  the  conference  in  the  form  of 
a  memorandum,  subject:  Views  of  Organized  Labor  With  Respect  to  United 
States  Policy  in  Asia.  This  brief  summary  memorandum  does  not  quote  any 
participants  directly  nor  does  it  spell  out  in  detail  the  views  and  opinions 
of  individual  participants.  It  is  in  fact  merely  an  informal  record  of  the  sense 
of  the  meeting  and  hence  has  not  even  been  verified  by  the  participants. 

The  September  14,  1949,  meeting  was  called  by  the  Department  as  a  means 
of  conferring  with  representatives  of  organized  labor  and  of  obtaining  their 
concrete  suggestions  for  United  States  policy  in  Asia. 

The  Department  has  followed  the  practice  of  conducting  such  conferences 
with  representative  groups  in  regard  to  each  area  of  the  world  in  order  to 
ascertain  the  views  of  experts  and  open  leaders  in  all  walks  of  American  life. 
The  Department  has  learned  from  experience  that  great  benefit  is  derived  from 
face-to-face  Informal  conferences  with  truly  representative  persons  from  busi- 
ness, farm,  labor,  veterans,  religious,  and  other  important  groups.  To  ignore 
the  contribution  these  citizens  are  capable  of  making,  in  the  Department's  judg- 
ment, is  to  encourage  "ivory  tower"  policy  making  and  narrowness  of  view. 

It  is  also  pointed  out  that  since  the  sole  purpose  of  these  meetings  is  to  obtain 
the  best  private  thinking  available  on  various  problems  of  foreign  affairs  and 
not  to  either  formulate  or  to  promote  policies,  a  completely  frank  and  un- 
inhil)ited  exchange  of  views  and  ideas  is  essential.  This  can  be  made  possible 
only  if  the  participants  are  assured  that  their  remarks  will  be  held  in  com- 
plete confidence.  The  Department  has  provided  this  assurance  and  has  done 
so  in  good  faith. 

Under  the>-e  circumstances,  the  Department  would  be  guilty  of  a  breach  of 
confidence  were  the  informal  record  of  the  September  1949  conference  made 
available  to  the  committee  without  the  prior  approval  of  the  participants. 
Should  the  committee  wish  the  Department  to  place  the  matter  before  the  organ- 
ized labor  representatives  who  attended  the  meeting,  however,  the  Department 
will  do  so. 

Sincerely  yours, 

Carlisle  H.  Humelsine. 

Senator  Smith.  What  is  the  purpose  of  that  letter  in  this  record? 
Just  to  show  you  have  called  for  this  memorandum  and  did  not  get 
it? 

]\Ir.  Morris.  The  idea  is  that  the  committee  may  decide  to  take  some 
testimony  on  what  happened  at  that  conference. 

Senator  Smith.  I  suppose  we  can  do  that,  can  we  not  ? 

iVIr.  Morris.  Yes. 

Senator  Smith.  I  mean,  what  is  the  point  of  putting  that  letter 
in  here? 

Mr.  jNIorris.  Well,  the  request  is  in  the  record,  Senator,  and  I  think 
since  the  request  is  in,  we  should  have  the  answer  of  the  State  De- 
partment. 

Slenator  Smith.  I  do  not  see  how  that  serves  as  evidence  in  this  hear- 
ing, except  that  you  may  want  to  call  on  them  and  have  a  hearing, 
subpena  these  witnesses,  and  so  on. 

But  what  point  does  that  serve  in  having  it  go  in  here  ? 

Mr.  Morris.  If  the  request  of  Senator  McCarran  asking  for  that  is 
in  the  record,  I  think  in  all  fairness  to  everybody,  the  reply  on  the 
part  of  the  State  Department  shoidd  go  in. 


][294  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Smith.  I  have  no  objection  to  having  it  go  in,  but  I  do  not 
see  any  point  in  it,  particularly. 

Mr.  Morris.  It  is  the  background,  Senator.  If  the  decision  is  now 
made  that  we  should  have  to  take  some  testimony,  it  is  because  we  were 
not  able  to  get  the  transcript. 

You  see,  in  connection  with  this,  Senator,  if  this  transcript  had 
been  made  available  to  the  committee  some  weeks  ago,  when  we  brought 
Mr.  Colegrove  down  three  times  and  Mr.  Stassen  three  times,  to  testify 
as  to  what  happened  at  this  particular  conference,  all  of  that  would 
not  have  been  necessary.  It  all  could  have  been  obviated  if  we  had 
had  the  transcripts. 

S'enator  Smith.  What  else  do  you  have  ? 

Mr.  Mandel.  On  September  25,  1951,  exhibits  266  and  267  were  two 
letters,  one  addressed  by  Senator  McCarran  to  Hon.  Dean  Acheson, 
asking  for  details  in  reference  to  a  conference  held  on  October  12, 
1942,  m  regard  to  which  we  have  received  testimony. 

Then  the  reply  was  also  made  an  exhibit,  dated  September  1,  1951, 
and  in  this  reply  the  Department  letter,  signed  by  Jack  K.  McFall, 
says  that : 

These  efforts  to  obtain  information  respecting  the  meeting  were  complicated  by 
the  fact  that  the  departmental  officers  who  reportedly  participated  were  no 
longer  with  the  Department. 

The  Department  will  again  examine  its  files  with  a  view  to  obtaining  informa- 
tion bearing  on  the  specific  questions  in  your  letter  of  August  27  and  will  write 
you  further  upon  completion  of  this  reexamination. 

Now,  we  have  received  a  letter  with  regard  to  that  conference,  signed 
by  Sumner  Welles  on  his  own  personal  letterhead.  This  letter  has  been 
directed  to  Mr.  Victor  Lasky,  and  we  have  a  letter  from  Mr.  Victor 
Lasky  permitting  us  to  make  this  part  of  our  records,  and  if  you  will 
permit,  I  will  read  the  excerpt  from  the  letter  of  Mr.  Welles  pertaining 
to  this  conference. 

Senator  Smith.  What  conference  was  that  ? 

Mr.  Morris.  That  came  up  in  previous  testimony,  Mr.  Chairman. 

Senator  Smith.  Has  that  been  referred  to  heretofore  ? 

Mr.  Morris.  Yes ;  several  witnesses  have  testified,  and  this  letter  is 
probative,  has  some  evidentiary  bearing  on  that  testimony. 

Senator  Smith.  Has  the  other  letter  been  challenged  by  the  State 
Department  ? 

Mr.  Morris.  No;  the  only  trouble  is  that  no  records  of  it  can  be 
found. 

Senator  Smith.  All  right. 

Mr.  Mandel.  This  is  the  letter  of  Sumner  Welles,  addressed  to  Mr. 
Victor  Lasky,  dated  August  24,  1950,  and  I  read  a  part  of  the  letter : 

To  the  best  of  my  recollection  I  saw  Mr.  Earl  Browder,  whom  I  had  not  pre- 
viously met,  twice  at  my  office  in  the  State  Department,  the  first  time  at  my 
request  and  the  second  time  at  his  request. 

We  were  very  much  interested  in  the  State  Department  at  that  time 

Senator  Smith.  It  says  "concerned." 
Mr.  Mandel  (reading)  : 

We  were  very  much  concerned  in  the  State  Department  at  that  time  lest 
the  armies  of  the  Chinese  Nationalist  Government  and  the  armed  forces  opposed 
to  the  Nationalist  Government  expend  their  energies  on  fighting  each  other 
rather  than  on  fighting  the  Japanese  invaders.    My  recollection  is  that  the  first 


INSTITUTE    OF   PACIFIC   RELATIONS  1295 

interview  with  Mr.  Browder  was  suggested  by  the  White  House  as  a  result  of  an 
article  that  had  appeared  in  the  Daily  Worker,  which  gave  a  wholly  false  account 
of  A,merican  policy  with  regard  to  China  and  which  it  was  believed  might  do 
harm  in  China  by  provoking  an  even  more  acute  crisis  between  the  Nationalist 
Government  and  the  Chinese  Communists.  It  was  for  that  purpose  that  Mr. 
Browder  was  requested  to  come  to  see  me.  My  recollection  furtlier  is  that  a  cor- 
rection was,  in  fact,  later  made  in  the  Daily  Worker.  I  believe  further  that  my 
second  and  final  interview  with  Mr.  Browder  had  to  do  with  the  same  matter 
and  was  held  after  the  correction  in  the  Daily  Worker  had  been  made. 

Mr.  Morris.  Mr.  Chairman,  will  you  accept  those  into  the  record  ? 

Senator  Smith.  I  do  not  see  much  point  to  it,  but  anyhow,  they 
can  go  in. 

(The  communications  referred  to  were  marked  "Exhibit  336"  and 
are  as  follows:) 

Exhibit  No.  336 

OCTOBEK  10,  1951. 
Robert  Morris, 

Senate  Judiciary  Committee, 

Senate  Office  Building,  Washinfffon,  D.  C. 
Dear  Mr.  Morris  :  Concerning  your  letter  of  October  7,  in  which  you  request 
correspondence  sent  me  by  Mr.  Sumner  Welles,  please  find  enclosed  said  corre- 
spondence. I  have  no  hesitation  about  turning  it  over  to  you  as  Mr.  Welles,  I  be- 
lieve, understood  that  it  was  meant  for  publication.  However,  I  would  appreciate 
your  notifying  Mr.  Welles  that  you  liave  obtained  same. 
Sincerely, 

Victor  Lasky. 

Bar  Harbor,  Maine,  August  24,  1950. 
Mr.  Victor  Lasky, 

New  York,  N.  Y. 

My  Dear  Mr.  Lasky:  Your  letter  of  August  17  has  been  forwarded  to  me. 
Since  I  am  here  in  Maine  and  all  of  my  personal  memoranda  and  files  are  at  my 
house  in  Maryland,  it  is  not  possible  for  me  to  consult  the  latter  with  regard  to 
the  inquiry  you  make  of  me.  After  my  return  home  early  in  October  I  will  be 
glad  to  give  you  the  detailed  information  which  you  request  if  that  will  not  be 
too  late  for  your  purposes. 

As  you  will  understand  after  an  interval  of  some  10  years  I  do  not  remember 
the  details  offhand. 

To  the  best  of  my  recollection  I  saw  Mr.  Earl  Browder,  whom  I  had  not  pre- 
viously met,  twice  at  my  oflSce  in  the  State  Department,  the  first  time  at  my 
request  and  the  second  time  at  his  request. 

We  were  very  much  concerned  in  the  State  Department  at  that  time  lest  the 
armies  of  the  Chinese  Nationalist  Government  and  the  armed  forces  opposed  to 
the  Nationalist  Government  expend  their  energies  on  fighting  each  other  rather 
than  on  fighting  the  Japanese  invaders.  My  recollection  is  that  the  first  inter- 
view with  Mr.  Browder  was  suggested  by  the  White  House  as  a  result  of  an 
article  that  had  appeared  in  the  Daily  Worker,  which  gave  a  wholly  false  account 
of  American  policy  with  regard  to  China  and  which  it  was  believed  might  do 
harm  in  China  by  provoking  an  even  more  acute  crisis  between  the  Nationalist 
Government  and  the  Chinese  Communists.  It  was  for  that  purpose  that  Mr. 
Browder  was  requested  to  come  to  see  me.  My  recollection  further  is  that  a  cor- 
rection was,  in  fact,  later  made  in  the  Daily  Worker.  I  believe  further  that  my 
second  and  fi;nal  interview  with  Mr.  Browder  had  to  do  with  the  same  matter 
and  was  held  after  the  correction  in  the  Daily  Worker  had  been  made. 

Believe  me. 

Sincerely  yours, 

Sumner  Welles. 

Mr.  Morris.  I  think  that  is  all  we  have  today,  then,  Mr.  Chairman. 

The  full  Judiciary  Committee  meets  tomorrow,  I  understand,  and 

Monday,  and  we  have  four  executive  sessions  scheduled  for  Tuesday, 

22848— 521— pt.  5 4 


1296  INSTITUTE    OF   PACIFIC   RELATIONS 

SO  I  think  the  next  open  hearing  we  will  be  able  to  have  will  be 
Wednesday. 

Mr.  Wallace  and  Mr.  Alsop  have  both  asked  that  they  be  permitted 
to  appear  in  open  session,  and  I  think  Senator  McCarran  is  trying  to 
work  out  an  open  hearing  for  them  on  Wednesday. 

Senator  Smith.  If  they  have  any  information  to  give  us,  all  right. 

If  there  is  nothing  further,  then,  the  hearing  is  in  recess. 

( Wliereupon,  at  4 :  05  p.  m.,  the  hearing  was  recessed,  subject  to  the 
call  of  the  Chair.) 


INSTITUTE  OF  PACIFIC  EELATIONS 


WEDNESDAY,   OCTOBER   17,    1951 

United  States  Senate, 

Subcommittee  to  Inv^estigate  the  Administration 
or  THE  Internal  Security  Act  and  Other  Internal 

Security  Laws  of  the  Commiitee  on  the  Judiciary 

Washington^  D.  G. 

The  subcommittee  met  at  10 :  15  a.  m.,  pursuant  to  notice,  in  room 
424,  Senate  Office  Building,  Senator  Pat  McCarran  (chairman) 
presiding. 

Present :  Senators  McCarran,  Eastland,  O'Conor,  Smith,  Ferguson, 
and  Jenner. 

Also  present :  Senators  McMahon  and  McCarthy ;  J.  G.  Sourwine, 
committee  counsel ;  Kobert  Morris,  subcommittee  counsel ;  and  Ben- 
jamin Mandel,  director  of  research. 

The  Chairman.  The  committee  will  come  to  order. 

I  am  sorry  the  room  has  to  be  crowded  as  much  as  it  is.  I  hope 
you  will  assist  us  in  keeping  it  as  quiet  as  possible. 

Let  me  say  at  the  outset  that  it  is  quite  customary  where  two  or 
more  witnesses  are  to  be  in  attendance  under  a  general  orderly  pro- 
cedure to  have  the  witnesses  not  before  the  tribunal  or  before  the 
committee  excluded  from  the  room.  It  is  the  judgment  of  the  com- 
mittee that  in  this  case  that  rule  will  be  waived.  Mr.  Alsop  is  here, 
and  he  may  remain  here. 

You  may  proceed,  Mr.  Morris. 

Mr.  Morris.  Mr.  Wallace  has  not  been  sworn,  Senator. 

The  Chairman.  You  do  solemnly  swear  the  testimony  you  are 
about  to  give  before  the  Judiciary  Committee  of  the  United  States 
Senate  will  be  the  truth,  the  whole  truth,  and  nothing  but  the  truth, 
so  help  you  God  ? 

Mr.  Wallace.  I  do. 

TESTIMONY  OF  HENKY  A.  WALLACE,  SALEM,  N.  Y.,  ACCOMPANIED 
BY  GEORGE  W.  BALL,  COUNSEL 

Mr.  Morris.  Mr.  Wallace,  is  it  true  that  you  asked  to  come  before 
this  body  because  public  testimony  has  been  given  to  the  effect  that 
you  were  guided  by  Communists  ? 

Mr.  Wallace.  That  is  my  understanding  of  the  testimony  of  Mr. 
Budenz. 

Mr.  Morris.  Mr.  Chairman,  I  am  asking  if  you  will  receive  in 
evidence  today  the  testimony  of  Mr.  Wallace  for  that  limited  purpose, 
namely,  Mr.  Wallace  feels  that  testimony  before  this  committee  is  of 

1297 


1298  INSTITUTE    OF   PACIFIC   RELATIONS 

such  a  nature  that  his  character  and  reputation  has  been  damaged,  and 
he  would  like  to  testify  before  this  body. 

The  Chairman.  Very  well,  he  has  that  right. 

Mr.  Morris.  In  addition.  Senator,  there  are  certain  aspects  of  Mr. 
Wallace's  testimony  that  relate  to  the  Institute  of  Pacific  Relations, 
and  we  would  like  to  have  that  accepted  in  the  ordinary  course  of  this 
hearing. 

The  Chairman.  You  can  bring  that  up  in  your  questions  as  you 

see  fit. 

Mr.  Morris.  I  think,  Senator,  I  would  like  to  go  into  the  latter  at 

the  outset. 

Mr.  Wallace,  did  you  write  a  booklet  for  the  Institute  of  Pacific 
Relations  at  any  time? 

Mr.  Wallace.  Yes,  in  April  and  May  of  1944  I  wrote  a  booklet 
entitled  "Our  Job  in  the  Pacific." 

Mr.  Morris.  Will  you  relate  to  us  the  circumstances  preceding  your 
writing  that  booklet? 

Mr.  Wallace.  After  it  had  become  public  knowledge  that  I  had 
been  designated  by  President  Roosevelt  to  go  on  a  mission  to  China, 
a  representative  or  representatives  of  the  Institute,  and  I  do  not  know 
which 

Mr.  Morris.  You  do  not  know  who  they  were  ? 

Mr.  Wallace.  I  do  not  know  which,  whether  it  was  one  or  whether 
it  was  more  than  one  who  called  on  me,  and  I  do  not  have  any  way 
of  ascertaining  unless  that  could  be  obtained  from  the  institute. 

I  do  remember  very  clearly  that  sometime  in  March  or  early  April 
Mrs.  Lattimore  did  call  on  me  with  the  proposal  that  I  write  the 
pamphlet,  and  I  indicated  that  I  was  very  short  of  time  with  this  trip 
coming  on,  that  I  couldn't  take  the  time  to  write  the  pamphlet,  that 
I  did  have  certain  ideas  that  I  would  very  much  wish  to  get  on  the 
record,  that  I  was  honored  by  the — I  am  not  sure  I  said  that  I  was 
honored  by  it,  but  in  retrospect  I  would  say  I  was  honored  by  the 
request. 

Senator  Ferguson.  Did  she  indicate  she  was  representing  the  In- 
stitute of  Pacific  Relations? 

Mr.  Wallace.  Yes;  that  was  very  clear  she  was  representing  the 
Institute  of  Pacific  Relations. 

So  we  did  work  together.  I  dictated  quite  a  mass  of  material  to 
Mrs.  Lattimore. 

Mr.  Morris.  You  dictated  it  to  Mrs.  Lattimore? 

Mr.  Wallace.  Yes. 

Mr.  Morris.  Did  she  take  it  down  in  shorthand  ? 

Mr.  Wallace.  No,  she  took  it  down  in  outline.  I  don't  think  she 
is  an  expert  in  shorthand.  She  may  be.  I  don't  know  as  to  that. 
Anyhow,  I  did  dictate  a  mass  of  material  in  outline  to  Mrs.  Latti- 
more. I  got  various  friends  to  work  on  certain  other  aspects  of  tJie 
important  investment  problem  in  China,  that  is,  people  who  had  been 
in  tlie  Board  of  Economic  Warfare  Avhen  I  was  there. 

Mr.  Morris.  Will  you  identify  those  for  the  committee,  Mr.  Wal- 
lace? 

Mr.  Wallace.  I  don't  remember  their  names.  I  remember  they 
were  in  the  Board  of  Economic  Warfare.  It  may  be  that  I  just  sent 
the  word  out  to  get  that  material.  I  don't  think  it  is  relevant  to  what 
you  are  after  here  because  I  don't  think  there  is  any  discussion  with 


INSTITUTE    or   PACIFIC   RELATIONS  1299 

regard  to  the  nature  of  that  material  and  the  section  on  investment. 
So  far  as  I  know,  there  is  not,  so  I  think  it  would  be  quite  proper  not 
to  go  into  that  side  of  it. 

Mr,  ]\IoRRis.  Mr.  Wallace,  one  of  the  issues  here  concerning  the 
testimony  was  whether  or  not  you  were  guided  by  Communists. 

Mr.  Wallace.  I  can  assure  you  that  nobody  who  gave  me  this  in- 
formation on  investments  was  a  Commnnist  or  ever  mentioned  as  a 
Communist,  I  can  assure  you  that. 

Senator  Ferguson.  Do  you  know  whether  there  were  any  in  your 
department  ? 

Mr.  Wallace.  The  Board  of  Economic  Warfare? 

Senator  Ferguson.  Yes. 

Mr.  Wallace.  I  did  not  know  at  the  time.  I  have  been  told  since 
that  there  were.  As  a  matter  of  fact,  I  have  been  trying  to  get  infor- 
mation on  that  on  this  trip,  but  so  far  I  have  not  been  able  to  do  it. 

I  do  know  that  Mr.  Dies  alleged  there  were.  I  do  know  one  of  the 
men  he  mentioned  threatened  suit  against  Mr.  Dies,  and  Mr.  Dies 
withdrew  the  allegation  on  the  floor  of  the  House,  and  the  House 
recompensed  him  to  the  extent  of  attorney's  fees  amount  to  $800  or 
$900  for  the  damage  he  had  done  this  man. 

Senator  Ferguson.  Was  that  one  of  the  men  who  furnished  any  of 
the  material? 

Mr.  Wallace.  I  don't  think  this  man  was.  I  am  quite  sure  he  was 
not  because  he  was  in  an  administrative  position. 

Mr.  Morris.  In  view  of  what  we  have  just  said,  you  will  agree  that 
was  a  proper  inquiry  ? 

Mr.  Wallace.  I  will  agree  that  it  is  a  proper  inquiry,  but  I  am  sure 
3'ou  will  also  agree  that  in  a  public  hearing  damage  could  be  done  to 
any  people  that  might  be  mentioned  in  connection  with  this  particu- 
lar matter  even  though  there  is  absolutely  nothing  that  is  valid,  abso- 
lutely nothing,  and  I  think  if  you  will  read  the  section  on  investment 
you  will  agree. 

There  is  no  valid  criticism  or  there  can  be  no  suggestion  by  anyone 
there  is  anything  of  a  Communist  nature  in  the  section  on  investments. 
As  a  matter  of  fact,  it  stands  out  quite  clearly,  you  might  say,  as  a 
free-enterprise  proposal  with  regard  to  investments. 

Mr.  SouRWiNE.  You  have  no  fear,  have  you,  that  the  naming  of 
someone  as  a  person  who  helped  you  prepare  material  for  this  booklet 
would  damage  that  person  in  any  way  ? 

Mr.  Wallace.  Yes,  I  would  say,  with  the  type  of  publicity  that  has 
been  current  and  with  the  atmosphere  that  exists  in  Washington  today, 
that  would  tend  to  be  the  net  effect.    That  is  really  what  I  feel. 

Mr.  SouRWiNE.  Do  you  want  the  committee  to  understand  that  you 
are  going  to  decline  to  answer  questions  with  regard  to  matters  which 
you  do  not  consider  relevant? 

Mr.  Wallace.  Now  I  certainly  shall  not  do  anything  to  stand  in 
contempt  of  the  committee  or,  as  a  matter  of  fact,  to  make  a  statement 
which  the  committee  would  feel  is  not  cooperative.  I  just  urge  on  this 
com^mittee  this  point  of  view,  and  I  think  the  committee  will  agree 
it  is  a  just  view. 

The  Chairman.  Just  a  minute.  With  reference  to  counsel,  you 
have  a  right,  but  you  are  not  going  to  sit  alongside  of  the  witness  and 
whisper  to  him  what  his  answers  are  going  to  be. 


1300  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Smith.  Mr.  Chairman,  I  know  that  we  do  not  want  to  have 
a  continual  disturbance  here,  and  I  am  sure  counsel  does  not  want  to, 
either.  What  about  having  counsel  sit  at  some  little  distance  from 
the  witness  so  he  can  object  at  the  proper  time  when  anything  is  asked 
and  do  it  on  the  record  ? 

The  Chairman.  All  right. 

Senator  Smith.  Mr.  Wallace,  you  said  just  then,  and  I  quite  appre- 
ciate what  you  have  in  mind,  that  whenever  you  make  a  statement,  a 
public  record,  it  could  hurt  somebody  under  the  present  state  of  the 
public  mind. 

Now  does  that  not  in  your  opinion,  as  has  been  the  opinion  of  the 
committee,  justify  some  sessions  of  this  committee  in  executive 
session  for  the  purpose  of  seeing  whether  or  not  there  is  any  real 
background  ? 

Mr.  Wallace.  I  quite  appreciate  the  feeling  of  the  committee  with 
regard  to  holding  closed  sessions  in  order  to  protect  the  reputations 
of  people,  and  I  have  heard  the  committee  so  state,  and  the  counsel 
of  the  committee  so  state.  I  think  it  is  a  fine  thing  that  the  committee 
is  taking  this  enlightened  position,  and  in  accordance  with  this  en- 
lightened position  I  feel  if  the  committee  feels  there  is  anything  in 
this  section  dealing  with  investments  that  bears  on  the  case  in  point, 
why,  I  shall  certainly  be  most  glad  to  answer. 

But  unless  you  do  feel  that,  I  would  hope  that  you  will  let  my 
refusal  to  answer  stand. 

Senator  Smith.  In  other  words,  in  that  connection  there  may  be 
instances  in  which  you  would  feel  that  a  public  disclosure  of  a  person's 
name  might  do  him  some  damage,  and  therefore  you  would  prefer  to 
answer  a  question  of  that  sort  in  executive  session  where  he  could  be 
protected  ? 

Mr.  Wallace.  Yes;  I  think  that  would  be  fair  to  the  people  in- 
volved. 

Senator  Ferguson.  May  I  inquire  as  to  whether  Mrs.  Lattimore,  or 
anyone  in  the  Institute  of  Pacific  Relations,  indicated  what  they 
wanted  you  to  write  about? 

•  Mr.  Wallace.  I  don't  remember  exactly  what  she  or  they,  as  the 
case  may  have  been,  might  have  said.  I  do  know  that  I  had  long  had 
an  interest  in  this  part  of  the  world. 

As  a  matter  of  fact,  it  is  my  recollection  I  gave  to  President  Roose- 
velt back  in  1933  or  1934  a  book  by  one  of  the  witnesses  before  this 
committee,  Professor  McGovern,  an  outline  of  the  history  of  China. 
It  is  my  recollection  he  was  the  author  of  this  particular  book,  and  I 
called  attention  to  certain  segments  of  this  book  dealing  with  China. 
So  my  interest  was  long  standing. 

So  when  I  was  going  to  go  on  this  trip  to  China,  I  felt  it  was  a 
unique  opportunity,  since  the  institute  had  indicated  their  interest,  to 
put  certain  of  my  vieAvs  on  the  record. 

Senator  Ferguson.  But  they  came  to  you  and  initiated  the  project  ? 

Mr.  Wallace.  They  initiated  it.     I  did  not  initiate  it. 

Mr.  Morris.  So  that  the  record  may  be  accurate  on  this,  Mr.  Wallace, 
I  think  the  question  addressed -to  you  was.  Do  you  know  the  names  of 
the  people  who  supplied  this  information  from  the  Board  of  Economic 
Warfare  ? 

The  Chairman.  Just  a  moment. 

Senator  McMahon,  will  you  have  that  seat  at  that  separate  table? 


INSTITUTE   OF   PACIFIC   RELATIONS  1301 

Mr.  Wallace.  I  can  remember  one  name. 

Mr.  Morris.  Will  you  give  us  that  name  in  executive  session? 

Mr.  Wallace.  Yes,  of  course  I  will  give  you  that  name  in  executive 
session. 

Mr.  Morris.  Do  you  recall  any  other  names  ? 

Mr.  Wallace.  No,  I  don't.  He  worked  with  the  various  people. 
Of  course,  at  that  time  it  was  the  FEA;  it  was  not  the  Board  of  Eco- 
nomic Warfare.  He  may  have  consulted  with  men  who  were  in  the 
FEA.  I  don't  know  whether  he  was  in  FEA  at  that  time  or  not— 
I  have  forgotten — but  he  had  been  in  FEA,  I  know,  and  in  the  Board 
of  Economic  Warfare,  and  I  wanted  to  get  this  highly  technical 
material.     This  man  saw  that  I  did  get  it. 

Senator  Smith.  Mr.  Chairman,  in  that  connection  I  think  we  ought 
to  have  a  clear  understanding  about  this.  Mr.  Wallace  has  said  that 
he  will  give  this  name  and  other  names  in  executive  session.  I  presume 
that  all  of  us  understand  that  anything  given  in  executive  session  may, 
upon  a  decision  by  the  committee,  be  thereafter  used,  after  considera- 
tion is  given  to  it  ? 

The  Chairman.  That  is  correct,  the  witness  should  know  that. 

Senator  Ferguson.  Otherwise  we  could  not  write  a  report. 

Mr.  Wallace.  I  may  say,  however,  that  you  will  find  in  reading  over 
this  section  there  is  no  reason  in  the  world  for  incorporating  it  in  any 
report  of  any  nature.  I  think  you  will  agree  with  me,  if  you  will  look 
into  the  facts,  that  there  is  absolutely  no  purpose  to  be  served,  and  I 
suspect  you  will  not  care  to  press  the  matter  in  executive  session  if  you 
will  look  into  the  data  in  this  particular  segment. 

Mr.  SouRwiNE.  Mr.  Chairman,  in  justice  to  Mr.  Wallace,  I  think  it 
should  be  made  clear  that  he  has  not  refused  to  tell  the  committee  here. 
He  has  simply  requested  the  opportunity  to  defer  that  answer  until 
we  have  an  executive  session. 

The  Chairman.  That  is  very  clear  and  very  well  understood. 

Senator  Smith.  If  that  is  his  judgment,  I  am  willing  to  abide  by 
that  for  the  present  in  order  that  those  persons  may  be  protected. 

The  Chairman,  The  very  aim  and  object  of  the  committee  in  hold- 
ing executive  sessions  was  to  weed  out  and  eliminate  any  possible  testi- 
mony that  might  do  injury  to  an  innocent  person.  We  have  been 
criticized  for  that  procedure  very  severely.  But  we  will  persist  in  that 
procedure  nevertheless  with  the  hope  tliat  we  may  eventually  work 
out  something  that  the  American  public  and  the  Congress  of  the 
United  States  may  have  confidence  in. 

Mr.  Morris.  Mr.  Mandel,  will  you  read  the  designated  sections  from 
that  pamphlet  that  we  have  introduced  in  executive  session  ? 

Mr.  Mandel.  I  read  from  page  14  of  Our  Job  in  the  Pacific,  by 
Henry  A.  Wallace : 

Today  the  peoples  of  the  east  are  on  the  march.  We  can  date  the  beginning 
of  that  march  from  1911  when  the  revolutionary  movement  among  the  Chinese 
people,  inspired  by  the  teachings  of  Sun  Yat-sen,  overthrew  the  Manchu  dynasty 
and  established  a  republic.  This  was  the  fiist  time  in  the  vast  and  culturally 
rich  history  of  Asia  that  an  Asiatic  people  turned  its  back  on  the  whole  principle 
of  monarchy  and  hereditary  rule  and,  in  spite  of  the  diflSculties  and  obstacles 
that  still  remained,  set  out  courageously  toward  the  attainment  of  democracy — 
government  of  the  people,  by  the  people,  for  the  people,  through  the  elected 
representatives  of  the  people.  The  march  was  joined  later  by  the  Russians,  and 
the  many  non-Russian  peoples  of  the  Soviet  Union  who  link  Europe  with  Asia 
across  the  greatest  land  mass  of  the  earth,  when  the  October  revolution  opened 
the  way  for  the  peasant  to  move  in  and  begin  to  take  over  his  own  land. 


2302  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Morris.  Will  you  continue  reading  those  excerpts,  Mr.  Mandel  ? 
Mr.  Mandel.  On  page  24  of  the  same  pamphlet,  speaking  of  free 
Asia  when  the  war  ends : 

Free  Asia  will  include  first  of  all  China  and  Soviet  Asia,  which  form  a  great 
area  of  freedom,  potentially  a  "freedom  bloc,"  which  it  is  to  our  interest  to 
have  become  a  freedom  bloc  in  fact. 

Then  on  page  28 : 

The  Russians  have  demonstrated  their  friendly  attitude  toward  China  by  their 
willingness  to  refrain  from  intervening  in  China's  internal  affairs. 

Then  on  page  30 : 

Russian  interest  in  the  Far  East  is  not  likely  to  be  that  of  territorial  expansion. 

Mr.  Morris.  Mr.  Wallace,  I  understand  from  your  testimony  in 
executive  session  that  there  are  certain  passages  in  that  pamphlet  you 
would  like  to  call  to  the  attention  of  the  committee. 

Mr.  Wallace.  Following  the  hearing  in  executive  session — let  me 
put  it  this  way — in  the  first  place,  not  all  these  passages  were  intro- 
duced in  executive  session. 

Mr.  Morris.  You  did  read  from  your  pamphlet  in  executive  session? 

Mr.  Wallace.  Yes.  I  did  read  in  response  to  a  question  from  Sena- 
tor Watkins,  I  believe,  who  read  the  first  part  of  the  section  quoted  on 
page  14,  and  I  read  the  remaining  part,  as  is  my  recollection. 

The  other  pages  were  not  introduced  in  executive  session,  I  think 
you  will  find,  although  1  think  it  is  your  intent  to  have  them,  and  I 
think  it  is  quite  agreeable  to  me  to  comment  on  them  now. 

Pursuant  to  the  question  raised  by  Senator  Watkins,  who  felt  that 
this. must  not  be  my  idea  but  must  be  somebody  else's,  I  wrote  him  a 
letter  on  October  11.  I  suggest  that  this  letter  be  introduced  in  the 
record,  and  now  might  be  a  proper  time  to  introduce  it  in  the  record. 

Dear  Senator  Watkins  :  I  feel  I  must  clear  up  any  question  of  my  responsi- 
bility for  the  thoughts  expressed  on  page  14  of  the  pamphlet  Our  Job  in  the 
Pacific. 

If  you  can  have  your  secretary  get  from  the  Congressional  Library  the  little 
pamphlet  the  Price  of  Free  World  Victory,  by  Henry  A.  Wallace,  you  will  note 
on  page  15  a  very  similar  idea  expressed.  Then  if  you  will  read  the  comments 
at  the  end  of  this  very  short  pamphlet  [it  was  really  a  reprint  of  my  May  8,  1942, 
speech]  you  will  gather  from  George  Fielding  Elliott,  Raymond  Clapper,  and 
Dorothy  Thompson  an  insight  into  the  temper  of  the  times. 

We  were  fighting  for  our  lives,  and  the  Senate  of  the  United  States  had  author- 
ized the  President  to  do  everything  he  could  in  cooperation  with  England  and 
Russia  to  defeat  Germany. 

As  it  is  put  on  page  525  of  Henry  Stimson's  book  on  active  service  :  "The  central 
political  decision  of  World  War  II  was  that  it  must  be  fought  in  an  alliance  as 
close  as  possible  with  Great  Britain  and  Soviet  Russia."  Not  once  during  the 
war  was  this  decision  questioned  or  any  modification  of  it  seriously  considered 
by  Stimson  or  by  any  man  whose  views  he  knew  among  the  leaders  of  the 
administration. 

The  three  nations  and  America  form  the  indispensable  team  for  victory  over 
Germany  together.  With  or  without  welcomed  and  helpful  accessions  of  strength 
from  smaller  nations  they  could  not  lose.  Apart  or  at  cross  purposes  or  with 
any  of  them  defeated,  they  could — 

there  is  a  word  left  out  here — 

hardly  fail  to  win.  It  was  thus  the  constiant  purpose  of  the  American  Govern- 
ment to  do  all  that  would  achieve  a  cherished  cordial  unity  of  action  and  so  to 
reinforce  its  two  great  allies  from  the  vast  American  reservoir  of  material 
wealth,  that  each  w^ould  press  on  with  increasing  power  to  a  final  combined 
victory. 


INSTITUTE    OF   PACIFIC   RELATIONS  1303 

I  did  all  I  could  to  "achieve  a  cherished  cordial  unity  of  action."  In  so  doing 
I  was  carrying  out  the  policy  of  the  Commander  in  Chief  of  the  United  States 
and  the  Senate. 

Today  the  situation  has  changed  radically  in  many  ways.  We  must  remember 
that  1942,  1943,  and  1944  were  totally  different  in  policy  requirements  than  either 
1933  or  1951. 

Sincerely  yours. 

Now,  gentlemen,  if  you  wish  me  to  quote  with  regard  to  this  par- 
ticular section,  which  you  will  find  has  a  remarkable  likeness  to  my 
speech  of  May  8,  1942. 

Now,  the  next  part  you  call  attention  to  is  on  page  24.  This,  as  I 
remember,  had  been  brought  up  by  witnesses  before  the  committee  but 
not  called  to  my  attention  in  executive  session.    I  will  now  deal  with  it. 

Where  did  your  quotation  begin,  Mr.  Mandel? 

Mr.  Mandel.  The  second  paragraph. 

Mr.  Wallace.  Now  if  you  will  read  the  whole  page,  you  will  dis- 
cover it  is  the  third  paragraph  I  used  the  words  "subject  Asia"  as 
synonymous  with  "colonial  Asia"  and  this  whole  discussion  is  in  terms 
of  whether  or  not  a  land  is  in  a  colonial  possession. 

You  will  also  note  with  regard  to  the  freedom  of  individual  peoples, 
that  that  is  to  some  degree  at  least — the  word  can  be  used  in  different 
senses,  but  with  regard  to  freedom  of  individual  peoples,  that  to  some 
extent  was  in  my  mind  because  I  say  in  the  part  ]Mr.  Mandel  quoted : 

Free  Asia  will  include,  first  of  all,  China  and  Soviet  Russia,  which  will  form  a 
great  area  of  freedom,  and  potentially  a  freedom  bloc,  which  is  to  our  interest 
to  have  a  freedom  bloc  in  fact. 

Certainly  the  Soviet  Union,  although  I  was  not  fully  aware  of  it  at 
that  time — I  was  to  a  considerable  extent  aware  of  it — but  the  Soviet 
Union  was  certainly  not  practicing  freedom  with  regard  to  many  mil- 
lions of  individuals  in  Soviet  Asia. 

Mr.  Morris.  You  did  not  say  that,  though,  Mr.  Wallace. 

Mr.  Wallace.  No,  but  what  I  am  saying  here  is  "which  is  to  our 
interest  to  have  a  freedom  bloc  in  fact."  I  do  say  it  is  not  a  freedom 
bloc.  The' inference  is  that  there  is  not  a  freedom  bloc  at  that  time, 
but  it  is  to  our  interest  to  have  a  freedom  bloc  in  fact. 

Obviously,  if  the  object  of  all  my  endeavors  at  this  time  was  what 
Stimson  said  his  object  was,  to  create  maximum  and  cordial  unity,  I 
would  not,  while  in  the  process  of  fighting  a  war  authorized  by  the 
United  States  Senate  in  cooperation  with  Eussia,  go  out  of  my  way  to 
antagonize  that  nation. 

That  simply  was  not  in  the  cards  in  1944.  I  just  was  not  going  to 
do  that.  So  I  think  the  sense  in  which  "free"  is  used  here,  you  will 
find  if  you  read  it  over,  is  referring  to  whether  or  not  a  country  is  in  a 
colonial  status. 

Now  what  was  'the  other  page  ? 

Mr.  Mandel.  Page  28. 

Mr.  Wallace.  Where  does  that  begin? 

Mr.  Mandel.  The  first  paragraph. 

Mr.  Wallace.  You  mean — 

The  Kussians  had  demonstrated  their  friendly  attitude  toward   China  by   i-e- 
fraining  from  intervening  in  China's  internal  affairs. 

That  was  definitely  true  at  that  time. 

Mr.  Morris.  What  about  the  activities  of  the  Chinese  Communist 
Party.  Do  you  not  feel  they  were  the  actions  of  the  Soviet  Govern- 
ment i 


1304  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Wallace.  That  would  require  a  great  deal  of  testimony  by 
people  who  have  been  on  the  ground  a  long  time,  and  then^  is  con- 
flicting testimony,  very  definitely  conflicting  testimony.  That  is,  there 
is  testimony  to  the  effect  that  Stalin  did  not  like  Mao  Tse-timi^  at  tliis 
time  at  all.  You  can  find  testimony  from  the  very  highest  sources 
that  Stalin  called  the  Chinese  Communists  "brigands,  robbers,  and 
Fascists,"  and  many  other  names. 

I  am  not  going  to  quote  this  highest  authority,  but  I  can  assure  you 
this  quotation  is  an  accurate  one  from  the  very  highest  authority. 

Mr.  Morris.  At  least  you  concede  there  is  a  conflict  on  this  ? 

Mr.  Wallace.  I  don't  say  there  is  a  conflict  with  regard  to  Russia's 
interfering  in  China's  internal  affairs  at  that  time.  I  don't  think 
there  is  conflict  with  regard  to  the  accuracy  of  the  statement  appear- 
ing in  the  pamphlet. 

You  are  asking  the  question :  "Were  the  Chinese  Communists  in  1944 
controlled  from  Russia?" 

In  reply  to  your  question,  not  with  regard  to  what  is  in  the  pamph- 
let, but  in  reply  to  your  question,  I  will  say  there  is  conflict  of  testi- 
mony as  to  the  extent  to  which  Chinese  Communists  at  that  time  were 
controlled  from  Russia.  I  think  you  ought  to  have  somebody  much 
more  expert  than  I  in  that  field  testify  on  that  particular  point. 

Mr.  Morris.  Mr.  Wallace,  you  say  here 

The  Russians  have  demonstrated  their  friendly  attitude  toward  China  by  their 
willingness  to  refrain  from  interfering  in  China's  internal  affairs. 

The  question  is,  did  not  the  activities  of  the  Chinese  Communists  at 
that  particular  time  represent  intervention  on  the  part  of  the  Soviets  ? 
Your  answer  is  unqualifiedly  "No."  You  later  say  there  is  conflict  in 
testimony.  Did  that  conflict  exist  as  of  that  time  or  is  it  a  conflict 
which  exists  at  the  present  time  ? 

Mr.  Wallace.  The  American  observers,  so  far  as  I  knoA^ — as  far  as 
I  can  remember  talking  with  them  at  the  American  Embassy — did  not 
feel  that  the  Chinese  Communists  were  under  the  control  of  Russia. 

Now  that  is  the  best  authority  I  know. 

The  Chairman.  Wliat  time  was  this  ? 

Mr.  Wallace.  That  was  in  June  of  1944.  That  was  the  feeling  they 
had  at  the  Embassy,  that  they  were  not  under  the  control  of  Russia. 
It  may  be  that  they  were.   I  just  don't  know. 

Mr.  Morris.  You  made  the  flat  assertion  in  that  booklet. 

Mr.  Wallace.  That  is  the  best  knowledge  I  had.  I  did  know  tliat 
the  Russians  had  pulled  out  of  Sinkian^,  and  it  was  to  the  best  of  my 
knowledge  that  the  Russians  were  not  interfering  at  that  time,  that 
the  Chinese  Communists  were  more  or  less  autonomous. 

Now  subsequently  events  have  happened  more  reoentlv.  and  T  don't 
think  they  have  a  bearing  on  what  I  wrote  there.  Subsequently 
events  indicate  that  in  many  cases  Chinese  Communists  that  people 
thought  were  independent  have  not  proved  to  be  independent.  I  am 
quite  willing  to  say  that.  But  at  this  time  this  was  my  belief,  that 
Russia  was  not  intervening  in  the  internal  affairs  of  Cliina,  and  you 
can  find  very  reputable  testimony  to  that  effect,  I  am  sure. 

Senator  Smith.  Mr.  Wallace  mentioned  the  Embassy.  Do  vou  mean 
the  American  Embassy  ? 

Mr.  Walt^ce.  In  Chungking. 

Senator  Smith.  Was  there  any  division  of  opinion  among  the  people 
at  the  Embassy?  t,        i     f 


INSTITUTE    OP   PACIFIC   RELATIONS  1305 

Mr.  Wallace.  I  don't  remember  any  on  this  particular  point. 

Mr.  MoKRis.  Who  are  the  people  who  advocated  the  interpretation 
you  rendered  ? 

Mr.  Wallace.  Of  course,  when  you  try  to  reconstruct  the  specific 
conversations  7  years  ago,  you  can't. 

Mr.  MoRKis.  We  do  not  want  you  to  do  that. 

Mr.  Wallace.  It  would  be  my  recollection  that  Ambassador  Gauss 
believed  this  very  strongly.  That  is  Ambassador  Clarence  E.  Gauss, 
our  Ambassador  at  Chungking.  That  would  be  my  recollection.  Of 
course,  I  did  not  have  the  benefit  of  his  judgment  at  this  date  because 
this  was  written  in  Apjril  of  1944. 

Mr.  Morris.  Before  you  went  to  China  ? 

Mr.  Wallace.  Before  I  went  to  China,  so  that  does  not  enter  into 
this  picture.  I  think  we  really  ought  to  confine  it  to  a  discussion  of  the 
pamphlet  and  the  information  I  had  available  to  me  at  that  time. 

The  Chairman.  Who,  if  anyone,  accompanied  you  on  that  Chinese 
trip? 

Mr.  Wallace.  Mr.  Chairman,  should  we  finish  up  the  other  points 
with  regard  to  the  pamphlet  or  not  ?  I  am  quite  willing  to  go  over  this 
if  you  wish. 

The  Chairman.  That  is  all  right.  I  have  to  leave.  I  want  to  ask 
that  question,  who,  if  anyone,  accompanied  you  on  that  trip? 

Mr.  Wallace.  There  was  the  crew  of  the  plane.  There  was  Owen 
Lattimore.  There  was  John  Carter  Vincent.  There  was  John  Hazard. 
Those  were  the  three  I  remember. 

The  Chairman.  For  some  portion  of  the  trip  Mr.  Alsop  accom- 
panied you  ? 

Mr.  Wallace.  Yes;  he  was  on  the  plane,  as  I  remember  it,  when 
we  flew  from  Kunming  to  Kweilin. 

The  Chairman.  Alsop  was  designated  by  General  Chennault,  was 
he  not  ? 

Mr.  Wallace.  That  is  right. 

The  Chairman.  They  accompanied  you  on  this  trip  ? 

Mr.  Wallace.  The  only  air  part  of  the  trip  they  accompanied  me 
on,  so  far  as  I  recollect,  is  from  Kunming  to  Kweilin. 

The  Chairman.  Who  in  that  group  you  mentioned  were  most  in 
yonr  company  during  the  entire  trip? 

Mr.  Wallace.  I  would  say  John  Carter  Vincent  was  for  most  of 
my  trip.  When  we  went  through  Soviet  Asia  John  Hazard  was  most 
of  my  company. 

Senator  Smith.  Did  they  all  leave  with  you,  or  did  you  meet  some 
of  them  over  there? 

Mr.  Wallace.  These  three  gentlemen  left  on  May  20  here  in  Wash- 
ington on  the  airplane  to  go  over  there. 

Senator  Smith.  From  questions  asked  it  sounded  like  they  might 
have  met  you  on  the  way. 

Mr.  Wallace.  Mr.  Alsop  met  me  at  Kunming  and  accompanied  me 
to  Kweilin  and  back. 

The  Chairman.  I  ask  to  be  excused.    I  have  to  make  a  call. 

Mr.  SouRwiNE.  Mr.  Chairman,  at  some  time  before  Mr.  Wallace 
leaves  the  question  of  the  pamphlet  and  without  breaking  into  Mr. 
Morris'  questions,  I  have  a  series  of  questions  to  ask. 

Senator  Smith.  You  may  reserve  your  right  to  ask  them.    ' 

Mr.  Wallace.  Now  what  was  the  next  page? 


1306  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Mandel.  Page  30,  Russian  interest. 

Mr.  Wallace.  Where  is  that  on  the  page  ? 

Mr.  Mandel.  Right  in  the  middle  of  the  page. 

Mr.  Wallace.  Yes;  the  third  paragraph. 

Russian  interest  in  the  Far  East  is  not  likely  to  be  that  of  territorial  expansion 

Mr.  Morris.  Will  you  read  the  next  sentence? 
Mr.  Wallace  (reading)  : 

The  Russians  certainly  want  a  friendly  government  in  China  and  a  friendly 
government  in  Korea  just  as  we  do. 

You  see,  at  that  time  and  for  a  number  of  years  thereafter  I  felt 
it  altogether  improbable  that  the  Chinese  and  the  Russians  would 
join  up.  I  felt  it  improbable  because  I  studied  the  history  of  that 
part  of  the  world  to  some  extent  and  assumed  that  the  Chinese  having 
seen  the  Russians  in  that  steady  march  across  Siberia,  taking  over 
some  land  that  had  been  inhabited  by  Chinese,  would  feel  with  re- 
gard to  Russia,  especially  the  Northern  Chinese  would  feel  with  regard 
to  Russia,  in  the  same  way  that  the  Mexican  people  have  felt  in  regard 
to  the  United  States ;  and  that  from  any  long-run  point  of  view  it 
was  altogether  improbable  that  there  would  be  an  effective  continu- 
ing cooperation  between  the  Chinese  and  the  Russians. . 

I  felt  that  very  strongly,  and  I  felt  at  this  time  very  strongly  that 
the  Russians,  knowing  the  attitude  of  the  Northern  Chinese  with 
regard  to  them  and  liaving  had  that  experience  under  Borodin  inter- 
fering in  Chinese  affairs,  an  experience  that  proved  very  disastrous 
from  the  Russian  point  of  view,  would  not  engage  in  any  type  of 
territorial  expansion  which  Avould  awaken  the  sleeping  might  of 
China. 

It  begins  to  look,  for  the  time  being  at  any  rate,  that  my  size-up 
as  made  in  1944  was  incorrect.  However,  history  is  not  yet  fully 
in,  and  there  are  fundamental  forces  at  work  there  which  I  think  are 
yet  to  express  themselves. 

Now  with  regard  to  the  Russians  certainly  wanting  a  friendly 
government  in  China  and  a  friendly  government  in  Korea  just  as 
we  do,  that  means  exactly  what  it  says,  and  I  think  with  regard  to  its 
signifiicance  we  only  have  to  think  of  our  own  situation  where  we 
would  like  to  have  friendly  governments  on  our  borders,  and  we  can 
postulate  that  another  great  nation  would  feel  the  same  way. 

I  go  further  and  say.  that  we,  the  United  States,  also  want  a  friendly 
government  in  China  and  Korea.  I  think  it  is  important  that  the 
governments  of  China  and  Korea  be  as  friendly,  if  there  is  going  to 
be  peace  in  the  world,  be  as  friendly  to  the  United  States  as  Russia. 

Russia  will  continue  to  insist  on  friendly  governments,  but  we 
also  should  insist  on  friendly  governments  there,  if  we  can  do  it 
without  the  loss  of  American  boys. 

Is  there  another  page',  by  the  way,  Mr.  Mandel  ? 

Mr.  Mandel.  No. 

Mr.  Wallace.  Are  there  any  other  questions  on  Our  Job  in  the 
Pacific? 

Mr.  Morris.  It  is  your  testimony  that  you  were  not  influenced  in 
any  way  by  Communist  propaganda  by  writing  that  pamphlet? 

Mr.  Wallace.  The  ideas  are  my  own,  so  far  as  I  can  discover.  I 
have  no  reason  for  thinking  that  Mrs.  Lattimore  influenced  what  I 


I 


INSTITUTE    OF   PACIFIC   RELATIONS  1307 

said  in  the  direction  of  Communist  propaganda,  and  I  would  cite 
specifically  the  same  thing  I  cited  in  the  executive  hearing. 

Mr.  Morris.  You  mean  to  imply,  Mr.  Wallace,  that  any  influence 
Mrs.  Lattimore  may  have  had  on  your  writing  would  be  Communist 
propaganda? 

Mr.  Wallace.  I  didn't  mean  to  insinuate 

Mr.  Morris.  I  think  the  record  would  give  that  impression. 

Mr.  Wallace.  I  certainly  want  to  straighten  that  out  because  I 
don't  have  any  reason  whatsoever  for  thinking  that  Mrs.  Lattimore 
was  representing  Communist  propaganda.  You  gentlemen  have  met 
her  face  to  face,  and  I  think  you  will  agree  she  makes  a  very  favorable 
impression  face  to  face. 

I  should  like  to  introduce  in  the  record  at  this  time  as  an  indi- 
cation that  if  there  was  any  Communist  influence  on  the  pamphlet, 
and  I  don't  see  any  evidence  of  it,  that  surely  they  were  not  influenc- 
ing what  I  said  about  Chiang  Kai-shek  on  page  29,  in  which  I  say : 

The  steadfast  leadership  of  President  Chiang  Kai-shek,  which  has  already 
made  China  a  world  power,  is  an  assurance  that  China's  political  aspirations 
are  not  limited  to  her  own,  but  stand  for  the  hopes  and  the  progress  of  all 
Asiatic  peoples. 

Again  it  is  a  little  hard  to  believe  that  if  there  were  a  Communist 
in  some  mysterious  way,  not  Mrs.  Lattimore  but  say  somebody  else, 
somebody  elsewhere  in  the  institute  might  have  been  reading  the 
manuscript  proof  and  decided  to  eliminate  or  insert  something,  it  is 
a  little  hard  to  see  how  they  could,  if  they  were  really  on  the  job, 
how  they  could  have  let  get  by  on  page  40  my  statement  with  regard 
to  our  strategic  needs  where  I  say : 

It  is  probably  safe  to  assume  that  the  thought  uppermost  in  the  minds  of  our 
Navy  after  the  war  will  concern  the  importance  of  securing  naval  and  air  bases 
which  will  insure  our  strategic  control  of  the  Pacific.  Such  bases  would  in  all 
likelihood  be  situated  on  small  islands  like  the  Japanese  mandate. 

These  bases  need  not  become  an  imperial  menace  to  Asia.  Our  liberation 
of  the  Philippines  will  outweigh  our  acquisition  of  new  islands,  and,  unlike  Japan, 
we  have  neither  the  will  nor  the  interest  to  project  control  over  the  mainland 
of  Asia. 

Neither  would  our  new  island  possessions  mean  a  new  colonialism,  for  their 
population  is  so  small  and  scattered  that  instead  of  problems  of  local  national- 
ism we  would  have  problems  of  local  trusteeship  and  economic  welfare. 

That  is,  I  can't  imagine  anyone,  who  was  really  representing  Russia 
anywhere,  wanting  me  to  come  out  on  the  eve  of  this  trip  across  from 
Soviet  Asia  to  China,  with  a  statement  for  American  bases  on  the 
Japanese  mandated  islands. 

Mr.  Morris.  Mr.  Chairman,  I  should  like  to  have  in  the  record  at 
this  time  the  official  Communist  estimate,  at  least  the  estimate  of  the 
pamphlet  we  have  been  discussing  as  it  appeared  in  the  Daily  Worker 
under  the  byline  of  Frederick  V.  Field. 

Mr.  Mandel,  will  you  read  from  the  article  ? 

Mr.  Mandel.  I  read  from  the  Daily  Worker  of  June  24,  1944,  page 
7,  headed  "Today's  guest  column,  Vice  President  Wallace's  pamphlet 
on  the  Pacific,  by  Frederick  V.  Field."    I  quote : 

Vice  President  Wallace's  pamphlet,  Our  Job  in  the  Pacific,  just  published  by 
the  Institute  of  Pacific  Relations,  is  a  progressive  and  statesmanlike  approach 
to  problems  of  our  foreign  policy. 


1308  INSTITUTE    OF   PACmC   RELATIONS 

He  says  that  there  is  a  "free  Asia"  and  a  "subject  Asia"  or  "colonial  Asia." 
"It  is  to  our  advantage,"  Mr.  Wallace  says,  "not  to  perpetuate  this  division  but 
to  see  an  orderly  process  of  transition  so  that  the  area  of  free  Asia  will  grow  and 
the  area  of  subject  Asia  continuallv  diminish." 

Then  further  Mr.  Field  says :     . 

I  have  studied  and  compared  these  sections  of  the  Wallace  pamphlet  with 
the  chapter  on  national  liberation  in  Asia  in  Earl  Browder's  Teheran,  Our 
Past  in  War  and  Peace.  Both  stand  for  the  most  rapid  reconstruction  of  the 
colonial  system  consistent  with  the  maintenance  of  unity  among  the  United 
Nations. 

Mr.  Browder,  however,  carries  the  analysis  several  steps  beyond  where  the 

Vice  President  leaves  off. 

And  finally  in  this  review : 

These  two  publications — 

meaning  Mr.  Browder's  and  Mr.  Wallace's — 

mark  an  advance  in  the  American  thinking  on  the  highly  controversial  problem 
of  colonies. 

Mr.  Wallace.  I  might  say  with  regard  to  this,  which  was  read 
from  the  Daily  Worker,  first,  that  I  never  read  the  Daily  Worker; 
I  couldn't  have  read  this  at  this  particular  time  even  if  somebody 
had  called  it  to  my  attention. 

Mr.  Morris.  You  say  you  could  not  have  read  it  if  someone  had 
called  it  to  your  attention  ? 

Mr.  Wallace.  I  couldn't  have  read  it  even  if  someone  had  called 
it  to  my  attention  because  I  wasn't  in  the  country.  Occasionally 
people  have  called  my  attention  to  something  that  is  in  the  Daily 
Worker,  but  I  have  never  read  it  myself,  and  they  might  have  called 
this  to  my  attention  if  I  had  been  in  the  country,  but  it  was  not  called 
to  my  attention.    This  is  the  first  time  I  have  heard  it. 

I  might  say  that  the  indication  is  that  Mr.  Field  was  following 
the  Wallace  line  and  not  Mr.  Wallace  following  the  Field  line,  be- 
cause most  of  that  is  a  direct  quotation  from  the  pamphlet  itself. 

Now  it  is  not  a  new  thing  for  the  Communists  to  try  to  get  aboard 
something  and  ride  it  for  all  they  can.  Anything  which  they  may 
think  is  respectable  they  will  get  aboard  and  try  to  ride  it  if  they 
can  do  so.  So  I  attach  nothing  significant  whatsoever  to  Mr.  Field's 
effort. 

Senator  Smith.  You  had  not  heard  that  before  ? 

Mr.  Wallace.  No. 

Senator  Smith.  Do  you  know  whether  Mr.  Budenz  at  that  time  was 
editor  of  the  Daily  Worker? 

Mr.  Wallace.  Yes,  Mr.  Budenz  was  editor  of  the  Daily  Worker 
in  1944.    I  have  discovered  that  in  some  of  my  recent  researches. 

Mr.  SoTJRWiNE.  Mr.  Wallace,  there  may  be  some  confusion  in  the 
minds  of  those  who  will  read  this  record  between  the  question  of  the 
influence  which  the  Institute  of  Pacific  Relations  had  on  this  pamphlet 
and  the  influence  which  the  Communists  had  on  the  pamphlet. 

I  should  like  to  direct  myself,  without  any  statement  or  implica- 
tion as  to  the  relationship  between  those  two  questions,  solely  to 
the  question  of  the  influence  of  the  Institute  of  Pacific  Relations  on 
this  pamphlet. 

Mr.  Wallace.  I  hope  you  will  also  ask  what  influence  I  had  on  the 
pamphlet. 

Mr.  SouRWiNE.  I  think  there  are  some  loose  ends  hanging,  sir. 


INSTITUTE    OF   PACIFIC    RELATIONS  1309 

Mr.  Wallace,  Certainly. 

Mr.  SouRwiNE.  CoiiM  Mrs.  Lattimore  have  been  the  first  person 
to  contact  you  about  this  pamphlet? 

Mr.  Wallace.  Frankly  I  don't  know.  She  is  the  first  person  I 
happened  to  remember,  but  I  just  don't  know. 

Mr.  SouRWiNE.  I  think  you  stated  in  executive  session  you  could  not 
say  whether  she  was  or  whether  she  was  not. 

Mr.  Wallace.  She  was  the  first  person  I  remember. 

Mr.  SotJRWiNE.  She  could  have  made  the  initial  contact? 

Mr.  Wallace.  She  could  have. 

Mr.  Sourwine.  Had  you  known  Mrs.  Lattimore  before  the  time  she 
contacted  you  ? 

Mr.  Wallace.  To  the  best  of  my  recollection  I  did  not.  I  might 
have  met  her  socially. 

Mr.  Sourwine.  When  she  came  to  you  initially  in  comiection  with 
this  pamphlet,  so  far  as  you  recall  now,  was  the  first  time  you  had  met 
her? 

Mr.  Wallace.  That  would  be  my  impression. 

Mr.  Sourwine.  Just  when  was  it  that  you  were  asked  by  Mrs.  Latti- 
more or  someone  else  on  behalf  of  the  Institute  of  Pacific  Relations  to 
write  this  pamphlet? 

Mr.  Wallace.  I  can't  say  the  precise  date,  but  I  would  say  in  late 
March  or  early  April. 

Mr.  Sourwine.  Of  1944? 

Mr.  Wallace.  Of  1944. 

Mr.  Sourwine.  You  gathered  a  substantial  amount  of  statistics  in 
connection  with  your  portion  of  the  pamphlet  about  the  national  in- 
come as  it  affects  the  amount  of  imports  into  the  United  States  and 
exports  from  the  United  States  to  the  Orient  ? 

Mr.  Wallace.  That  is  correct.  That  was  not  done  through  Mrs. 
Lattimore. 

Mr.  Sourwine.  No,  sir ;  it  is  understood  that  was  not,  but  I  think 
you  testified  you  did  do  considerable  research  in  the  work. 

Mr.  Wallace.  It  was  a  field  in  which  I  personally  was  very  much 
interested.  You  see,  I  have  had  the  view  for  many  years,  ever  since 
1909,  in  fact,  that  eventually  the  west  coast  would  have  as  gi'eat  a 
significance  for  this  Nation  as  the  east  coast.  I  gained  that  in  talking 
with  a  Mr.  Beard,  of  the  Sacramento  Bee,  who  had  served  on  the  Coun- 
try Life  Commission  with  my  grandfather  in  1908. 

I  traveled  through  the  West,  and  in  talking  with  Mr.  Beard  he  let 
his  imagination  loose  as  to  what  would  have  happened  if  the  Pilgrim 
Fathers  had  landed  on  the  west  coast.  I  have  always  believed  that 
the  west  coast  will  have  as  great  a  significance  to  this  Nation  as  the 
east  coast. 

I  had  studied  the  figures  very  carefully  as  to  the  mounting  per- 
centage of  our  imports  coming  from  the  Far  East  and  the  possibility 
of  our  exports  to  the  Far  East  mounting  through  the  west  coast  ports, 
and  entering  into  the  rate  of  growth  would  be  the  volume  of  our  cap- 
ital exports  because  obviously  the  United  States  would  be  the  only 
country  that  could  furnish  the  volume  of  capital  exports  that  would 
get  this  area  of  the  world  really  clicking  in  a  way  it  should  click. 

So  that  and  the  discussion  of  agriculture  I  very  much  wanted  to 
get  across  in  this  pamphlet  in  the  most  vigorous  way  possible. 


1310  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  SouRWiNE.  You  have  expressed  in  this  pamphlet  your  theories 
about  the  west  coast  and  its  probable  ascendancy  over  the  east  coast? 

Mr.  Wallace.  No,  I  don't  put  it  that  way. 

Mr.  SouRWiNE.  Since  it  is  entirely  collateral  to  this  discussion,  may 
I  go  on  just  a  minute?    I  was  only  interested  in  the  question  of  the 

fact. 
Mr.  Wallace.  I  am  not  saying  ascendency;  I  am  saying  equally 

important. 

Mr.  SouRW^NE.  But  that  question  which  you  have  now  dis- 
cussed  

Mr.  Wallace.  Was  a  little  bit  to  one  side. 

Mr.  SouRwiNE.  Is  not  contained  in  the  pamphlet. 

Mr.  Wallace.  I  don't  believe  so.  It  was  in  my  motivation.  I 
guess  you  don't  care  to  discuss  motivation. 

Mr.  SouRWiNE.  I  have  no  objection,  but  at  the  moment  I  should 
like  to  go  ahead  with  these  questions  which  I  believe  can  be  answered 
rather  quickly. 

It  took  you  how  long,  would  you  say,  to  gather  these  statistics  (hat 
you  used  in  this  pamphlet  ? 

Mr.  Wallace.  I  would  say  roughly  2  or  3  weeks. 

Mr.  SouRAViNE.  Can  you  tell  us  how  long  it  took  you  to  dictate  the 
pamphlet  to  Mrs.  Lattimore? 

Mr.  Wallace.  No.    I  was  with  her  I  would  guess  four  different 
times. 
.    Mr.  SouRwiNE.  About  four  times? 

Mr.  Wallace.  I  don't  know.    It  is  a  guess. 

Mr.  SouRWiNE.  She  came  to  see  you  on  four  different  occasions? 

Mr.  Wall.\ce.  I  would  say  roughly.  Of  course  when  you  are 
under  oath  you  get  a  little  cautious  about  precise  numbers. 

Mr.  SouRwiNE.  That  is  right,  and  all  we  want  is  your  best  rec- 
ollection. Was  it  a  full  day's  session  each  time  or  a  half -day  or  after- 
noon? 

Mr.  Wallace.  I  would  say  roughly  2  or  3  hours  would  be  my  guess. 

Mr.  SouRwiNE.  Two  or  three  hours  at  a  session  ? 

Mr.  Wallace.  Yes. 

Mr.  SouRWiNE.  So  you  had  8  to  12  hours  of  dictation  to  her  approxi- 
mately ? 

Mr.  Wallace.  That  would  be  my  rough  recollection. 

Mr.  SouRwiNE.  Over  what  period  of  time  did  you  dictate  to  her? 
Was  it  all  consecutive,  day  after  day  ? 

Mr.  Wallace.  No. 

Mr.  Sourwine.  Did  she  come  once  or  twice  a  week  ? 

Mr.  Wallace.  I  don't  remember.  It  was  strung  throughout  the 
month  of  April,  it  would  be  my  recollection,  and  early  May. 

Mr.  Sourwine.  Now,  there  is  a  slight  conflict  in  your  testimony  here 
and  your  testimony  in  the  executive  session  with  regard  to  the  matter 
of  whether  Mrs.  Lattimore  took  down  what  you  said,  and  with  the 
permission  of  the  chairman  I  should  like  to  read  about  a  quarter  of  a 
page  from  the  executive  session  testimony  and  ask  the  witness  to  com- 
ment upon  it. 

Mr.  Morris.  Do  you  have  the  original  manuscript,  the  original  draft  of  your 
dictation  on  this,  by  any  chance,  Mr.  Wallace? 

Mr.  Wallace.  I  do  not.    I  am  positive  I  don't  have. 

^Ir.  Morris.  You  do  not  remember  to  whom  you  dictated  it  first? 


INSTITUTE    OF   PACIFIC   RELATIONS  1311 

Mr.  Wallace.  To  Mrs.  Lattimore. 
Mr.  Morris.  She  took  it  down? 
Mr.  Wallace.  Yes. 

That  is  on  pages  21  and  22. 

Would  you  comment  on  that  testimony  ? 

Mr.  Wallace.  That  is  accurate. 

Mr.  SouRwixE.  By  "she  took  it  down"  you  do  not  mean  she  took  it 
down  verbatim,  that  she  took  down  verbatim  what  you  dictated  ? 

Mr.  Wallace.  No. 

Mr.  SouB^viNE.  She  was  simply  making  notes  with  regard  to  what 
you  had  told  her  your  views  were  ? 

Mr.  Wallace.  That  is  right. 

Mr.  SouRWiNE.  Your  testimony  today  makes  it  clear  that  that  was 
what  you  intended. 

Mr.  Wallace.  Yes. 

Mr.  SouEwiNE.  Now,  sir,  did  Mrs.  Lattimore  thereafter  produce  in 
draft  form  a  draft  comprising  her  expansion  of  what  you  had  given 
her  as  the  ideas  you  wanted  to  go  in  the  pamphlet? 

Mr.  Wallace.  That  is  correct. 

Mr.  SouEwiNE.  Can  you  recall  when  she  gave  that  to  you,  sir? 

Mr.  Wallace.  No.  I  would  say  it  finally  was  finished  up  along,  I 
would  think,  about  the  10th  of  May.    That  is  very  rough. 

Mr.  SouRwiNE.  Did  you,  sir,  have  her  draft  for  your  examination 
before  this  thing  went  into  proof  ? 

Mr.  Wallace.  It  is  my  recollection  that  it  was  in  manuscript  form. 
It  might  possibly  have  been  in  proof  form,  but  I  would  think  it  was 
in  manuscript  form  because  the  time  factor  was  very  close,  and  it 
was  not  finally  published  until  after  I  had  gone  on  my  trip. 

Mr.  SouRwiNE.  There  was  only  one  draft  then,  probably  in  manu- 
script, but  either  in  manuscript  or  in  proof  ? 

Mr.  Wallace.  That  is  right.  I  w^ouldn't  say  one  draft.  Maybe 
there  was  a  carbon  copy.     I  don't  know  as  to  that. 

Mr.  SouRwiNE.  I  do  not  mean  that.  Carbons  would  still  be  the 
same  draft.  I  do  not  want  to  quibble  with  you.  I  am  trying  to  find 
out  whether  it  is  possible  you  saw  both  a  draft  and  a  proof.  I 
believe  you  established  at  the  executive  session  that  you  saw  only  one 
and  you  thought  it  was  a  manuscript  draft. 

Mr.  Wallace.  I  think  it  was  a  manuscript  draft. 

Mr.  SouRwiNE.  You  did  not  see  both  the  manuscript  and  the 
proof? 

Mr.  Wallace.  I  can't  say  positively  on  that. 

Mr.  SouRwiNE.  You  remember  only  one? 

Mr.  Wallace.  I  just  don't  know.  It  was  one  or  the  other  or  both. 
I  think  we  will  have  to  leave  it  that  way. 

Mr.  SouRwiNE.  That  was  submitted  to  you  about  the  10th  of  May  ? 

Mr.  Wallace.  Shortly  before  I  left  is  all  I  can  say. 

Mr.  Sourwine.  When  did  you  leave? 

Mr.  Wallace.  On  May  20. 

Mr.  Sourwine.  Now  how  long  did  it  take  you  to  go  over  that  draft 
after  it  was  submitted  to  you,  Mr.  Wallace? 

Mr.  Wallace.  I  don't  know.     I  have  no  idea. 

Mr.  Sourwine.  Did  it  take  you  a  matter  of  weeks? 

Mr.  Wallace.  Obviously  not. 

22848— 52— pt.  & 5 


1312  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  SouEwiNE.  Did  it  take  you  a  matter  of  days  ? 

Mr.  Wallace.  My  guess  is  that  I  spent  an  evening  or  two  eve- 
nings on  it;  that  is  the  way  I  usually  do  that  kind  of  thing.  That 
is  all  I  can  say.     That  is  my  ordinary  custom. 

Mr.  SouRWiNE.  Did  you  make  extensive  changes  in  it  ? 

Mr.  Wallace.  I  don't  remember. 

Mr.  SouRwiNE.  Do  you  remember  any  changes  you  made  ? 

Mr.  Wallace.  I  don't  remember. 

Mr.  SouRwiNE.  Can  you  say  whether  you  did  make  any  changes? 

Mr.  Wallace.  I  can't  say  "yes"  or  "no."     I  just  don't  remember. 

Mr.  SouRwiNE.  You  cannot  say  you  did  not  make  any  ? 

Mr.  Wallace.  I  can't  say  I  made  any. 

Mr.  Sourwine.  In  other  words,  it  is  possible  that  j'-ou  made  no 
changes  in  the  draft  which  was  submitted  to  you  ? 

Mr.  Wallace.  It  is  possible  I  did  not. 

Mr.  SoTJRwiNE.  So  it  is  possible  that  beginning  with  your  dictation 
over  a  period  of  8  to  12  hours  to  Mrs.  Lattimore  of  the  ideas  which  you 
wanted  expressed  in  this,  she  subsequently  returned  with  a  draft  on 
which  you  spent  an  evening,  and  in  which  you  may  not 

Mr.  Wallace.  An  evening  or  two.  I  just  have  no  recollection  of  it. 
I  am  simply  reconstituting  this  as  best  as  I  can  from  my  habits,  not 
from  positive  recollection.  I  almost  invariably  do  make  changes  in 
this  kind  of  thing — almost  invariably  do. 

I  would  say  on  this  occasion  I  did.  After  7  years  you  cannot  swear 
positively  as  to  just  exactly  what  you  did. 

Mr.  Sourwine.  Could  it  have  been  Mr.  Owen  Lattimore  who  first 
asked  you  to  do  this  pamphlet  for  the  institute  ? 

Mr.  Wallace.  I  really  don't  know. 

Mr.  Sourwine.  In  other  words,  it  could  have  been? 

Mr.  Wallace.  It  could  have  been ;  I  don't  know. 

Mr.  Sourwine.  Did  you  know  anyone  else  in  the  Institute  of  Pacific 
Relations  besides  Mr.  and  Mrs.  Lattimore  ? 

Mr.  Wallace.  The  only  other  person  I  remember  knowing  was  Ed- 
ward C.  Carter,  whom  I  had  known  since  1929. 

Mr.  Sourwine.  Was  it  Mr.  Carter  who  asked  you  to  do  this  work  ? 

Mr.  Wallace.  I  don't  think  so.  He  might  have  instigated  it  because 
he  did  know  me,  and  I  think  he  had  a  respect  for  my  agricultural 
interest  in  the  Far  East. 

Mr.  Sourwine.  You  said  you  had  not  known  Mrs.  Lattimore  before 
she  came  to  you  with  regard  to  this  pamphlet? 

Mr.  Wallace.  I  don't  think  I  had  met  her. 

Mr.  Sourwine.  Had  you  known  Mr.  Lattimore  before  then  ? 

Mr.  Wallace.  I  had  met  him  once  just  before  he  went  as  adviser  to 
Chiang  Kai-shek.    So  far  as  I  know,  that  is  the  only  time  I  met  him. 

Mr.  Sourwine,  That  covers  the  point  I  wanted  in  the  record,  Mr. 
Chairman. 

Mr.  Morris.  Mr.  Wallace,  can  you  recall  where  these  evening  ses- 
sions took  place? 

Mr.  Wallace.  I  said  I  must  have  read  it  over— no,  as  far  as  I  can 
recollect  the  meetings  with  Mrs.  Lattimore  were  in  mv  office  here  in 
the  Senate  Office  Building  or  over  in  the  office  in  the  Capitol.  I  don't 
remember  specifically  which.  Mrs.  Lattimore  was  not  with  me  when 
I  read  over  the  manuscript,  as  neaj-ly  as  I  can  remember. 


INSTITUTE    OF   PACIFIC    RELATIONS 


1313 


Mr.  Morris.  Mr.  Chairman,  that  is  all  we  have  on  the  question  of 
the  booklet. 

Mr.  Wallace,  you  have  been  a  member  of  the  board  of  trustees  of  the 
Institute  of  Pacific  Relations? 

Mr.  Wallace.  I  was  so  informed.  I  have  never  checked  this  for 
myself.  I  have  never  attended  any  board  meeting.  I  was  informed 
by  Alfred  Kohlberg.  He  had  written  me  in  August  1950,  that  I  had 
been  a  trustee  of  the  Board  of  the  Institute  of  Pacific  Relations  for  at 
least  2  years. 

In '1950,  when  he  wrote  me,  I  had  no  recollection  of  it  whatsoever 
and  wrote  him  to  that  effect  I  had  none.  He  said  I  had  been  in  1946 
and  one  other  year.  I  suppose  in  that  case  it  might  have  been  1945, 
and  probably  they  asked  me  to  go  on  as  a  result  of  the  trip  to  Asia. 

I  do  know  that  a  list  of  the  board  of  trustees  in  1947  shows  I  was  not 
a  member,  and  apparently  when  I  retired  from  the  Cabinet  they  felt 
I  was  no  longer  of  service  to  them  and  dropped  me  from  membership 
at  that  time.  I  never  attended  any  meeting  of  the  trustees  of  the 
institute. 

Mr.  Morris.  Mr.  Chairman,  purely  for  the  purpose  of  the  record,  I 
would  like  to  introduce  a  photostatic  copy  of  the  list  of  the  board  of 
trustees  of  the  Institute  of  Pacific  Relations  for  the  year  1946,  which 
shows,  among  many  others,  Henry  A.  Wallace  under  the  heading 
"Board  of  Trustees." 

Senator  Smith.  All  right. 

(The  document  referred  to  was  marked  "Exhibit  No.  337"  and  is  as 
follows :) 

Exhibit  No.  337 

American  Council  Institute  of  Pacific  Relations 


Chairman :  Robert  Gordon  Sproul,  Ex- 
ecutive vice  cliairman :  Edward  C. 
Carter,  Treasurer :  Brooks  Emeny, 
Assistant  Treasurer :  Tillie  G.  Shahn, 
Secretary:  Marguerite  Ann  Stewart, 


Chairman,  research  advisory  commit- 
tee: Owen  Lattimore 

Vice  chairman,  research  advisory  com- 
mittee: Eugene  Staley 


Edward  W.  Allen 
Raymond  B.  Allen 
Christian  Arndt 
Paul  S.  Bachman 
Pearl  S.  Buck 
George  Cameron 
Edward  C.  Carter 
Joseph  P.  Chamberlain 
Allen  E.  Charles 
Laughlin  Currie 
John  L.  Curtis 
Joseph   S.  Davis 
A.  L.  Dean 
Len  De  Caux 
Dorothy  Douglas 
Brooks  Emeny 
Frederick  V.  Field 
Henry  Field 


BOABD    OF    TBUSTEES 

Galen  M.  Fisher 
G.  W.  Fisher 
Charles  K.  Gamble 
Mrs.  Frank  Gerbode 
Huntington  Gilchrist 
Carrington  Goodrich 
Henry  F.  Grady 
Mortimer  Graves 
John  W.  Greenslade 
William  R.  Herod 
John  Hersey 
Paul  G.  Hoffman 
William  C.  Johnstone 
Owen  Lattimore 
Herbert  S.  Little 
Charles  F.   Loomis 
Henry  R.  Luce 
Charles  E.  Martin 


Mrs.  Alfred  McLaughlin 
Abbott  Low  Moffat 
Harriet  L.  Moore 
George  Abbot  Morison 
Lawrence  Morris 
A.  W.  Robertson 
Chester  Rowell 
Robert  Gordon  Sproul 
G.  Nye  Steiger 
Donald  Straus 
George  E.  Taylor 
Juan  Trippe 
Henry  A.  Wallace 
Sumner  Welles 
Lynn  White,  Jr. 
Bray  ton  Wilbur 
Herbert  J.  Wood 
Mrs.  Louise  L.  Wright 


1314 


INSTITUTE    OF    PACIFIC   RELATIONS 


INTERNATIONAL   OFFICERS 


Grayson     Kirk,     Chairman, 
Committee 


Program 


Edward  C.  Carter,  Chairman,  Finance 
Committee 

William  L.  Holland,  Secretary 
General 


Percy    E.    Corbett,    Chairman,   Pacific 
Council 

Sir  George  Sansom,  Chairman, 
Research   Committee 

J.   J.   L.   Duyvendak,   Vice   Chairman, 
Research   Committee 

Mr.  Wallace.  May  I  add  many  other  respectable  names. 

Mr.  Morris.  Mr.  Wallace,  have  you  written  a  book  entitled  "Soviet 
Asia  Mission"? 

Mr.  Wallace.  I  have. 

Mr.  Morris.  Will  you  address  yourself  to  the  author's  note?  Will 
you  read  that  for  us,  please? 

Mr.  Wallace  (reading)  : 

In  acknowledgement  of  invaluable  assistance  in  preparing  the  manuschipt 
of  Soviet  Asia  Mission,  my  sincere  thanks  are  extended  to :  John  Hazard,  Owen 
Lattimore,  and  Capt.  Kennith  Knowles  for  intimate  observations  of  life  in  east 
Asia  today;  Joseph  Barnes,  Harriet  Moore,  Albert  Rhys  Williams,  Dr.  Tred- 
well  Smith,  and  Myra  Jordan  for  reading  the  text  and  offering  editorial  sug- 
gestions ;  and  to  Andrew  J.  Steiger,  who  compiled  the  book  from  the  diary  I 
wrote  during  the  trip  and  from  the  other  factual  material  supplied  him  by  me. 

Henry  A.  Wallace. 

Mr.  Morris.  Is  your  testimony  that  the  people  named  in  this 
author's  note  did  aid  in  the  preparation  of  this  book  ? 

Mr.  Wallace.  All  I  know  is  what  Steiger  told  me.  I  did  not  take 
the  manuscript  to  any  of  these  people  myself.     Steiger  took  it. 

Mr.  Morris.  Do  you  know,  Mr.  Wallace,  there  is  testimony  before 
this  committee  that  four  of  the  people  so  named  there  are 
Communists  ? 

Mr.  Wallace.  You  have  so  stated.     I  did  not  so  know. 

Mr.  Morris.  Do  you  wish  to  make  any  observation  one  way  or  the 
other  on  that  ? 

Mr.  Wallace.  I  merely  say  I  myself  did  not  come  in  contact  with 
these  people  and  did  not  know  three  of  these  people;  had  never  met 
them,  and  to  the  best  of  my  knowledge  still  have  never  met  them. 

Senator  Smith.  Is  that  sworn  testimony  ? 

Mr.  Morris.  Yes,  before  this  committee. 

Senator  Smith.  It  did  not  come  by  way  of  letters  ? 

Mr.  Morris.  That  is  sworn  testimony  before  the  committee. 

Mr.  Wallace,  therefore,  is  it  your  testimony  that  this  author's  note 
is  not  your  own  testimony,  but  it  is  what  Andrew  J.  Steiger  told  you 
about  the  preparation  of  this  book  ? 

Mr.  Wallace.  That  is  correct.  Andrew  J.  Steiger  got  the  informa- 
tion for  this  book — you  will  note  that  the  foreword  says  "with  the 
collaboration  of  Andrew  J.  Steiger." 

The  part  of  this  book  I  wrote  in  its  entirety  has  to  do  with 
agriculture. 

Mr.  :Morris.  Other  than  that,  everything  in  the  book  was  written 
bv  Mr.  Steiger? 

Mr.  Wallace.  I  wrote,  I  think,  a  part  of  the  introductory  notes  and 
one  or  two  other  spots,  but  the  part  that  I  remember  I  did  write  in 
its  entirety  has  to  do  with  agriculture. 


INSTITUTE    OF   PACIFIC   RELATIONS  1315 

Steiger  for  the  rest  not  merely  relied  on  the  notes  that  I  furnished 
him,  but  also  used  notes  that  he  could  get  from  other  people  on  the 
trip  and  anybodj^  else  that  he  felt  was  an  expert  in  this  field.  It  was 
in  that  connection  apparently  he  had  gone  to  these  various  people 
and  got  them  to  read  the  manuscript  to  find  if  this  was  accurate  or  that 
was  accurate. 

I  did  not  take  the  manuscript  to  any  of  these  people  myself. 

Mr,  Morris.  Why  did  you  select  Andrew  J.  Steiger  to  prepare  a 
book  that  was  going  to  be  published  in  your  name? 

Mr.  Wallace.  Andrew  J.  Steiger  came  to  me  as  a  newspaperman 
and  a  broadcaster  who  had  lived  for  some  years  in  the  Soviet  Union 
as  a  correspondent  for  certain  of  the  American  press,  and  I  don't 
remember  now.  I  looked  him  up  to  this  degree :  to  find  who  his  ante- 
cedents had  been,  and  they  were  Americans  for  some  generations,  and 
that  he  had  been  raised  in  the  Lutheran  Church,  and  I  think  had  been 
with  either  the  Evangelical  or  Lutheran  Evangelical  Church. 

He  seemed  to  be  a  man  of  deep  religious  convictions  and  felt  that 
bringing  out  my  observations  on  this  trip  across  the  Soviet  Union 
would  further  the  friendly  relationship  between  the  United  States 
and  Russia. 

I  felt  very  strongly  on  that  subject  myself,  that  everything  possible 
should  be  done  to  cultivate  the  friendly  attitude  in  the  postwar  period, 
and  agreed  with  him  that  something  of  the  sort  would  be  helpful. 

I  don't  just  know  when  he  came  to  see  me.  It  was  probably  in  late 
1944  or  early  1945. 

Mr.  Morris.  Did  anyone  recommend  him  to  you? 

Mr.  Wallace.  Yes.  It  was  a  newspaper  publisher  who  recom- 
mended him  to  me. 

Mr.  Morris.  Who  was  that? 

Mr.  Wallace.  I  again  hate  to  embarrass  anybody,  but  the  news- 
paper publisher  who  did  recommend  him  to  me  was  a  Mr.  Charles 
Marsh,  who  publishes  a  number  of  papers  in  the  South.  Mr.  Charles 
Marsh  had  called  my  attention  to  a  book  by  Steiger.  This  was  prior 
to  my  trip ;  that  Mr.  Steiger  had  written  a  book  with  regard  to  the 
growth  of  industry  in  the  Soviet  Asia  in  collaboration  with  somebody 
else,  whose  name  I  have  forgotten. 

As  I  remember  it,  he  gave  me  a  copy  of  this  book. 

Mr.  Morris.  You  don't  know  the  name  of  that  book  ? 

Mr.  Wallace.  No.  It  can  readily  be  ascertained.  It  dealt  with 
the  rapid  expansion  of  population  and  industry  and  agriculture.  I 
have  not  read  it  since  1944. 

After  I  returned,  this  newspaperman  said — 

I  have  gotten  in  touch  with  this  man  who  wrote  that  book  about  the  Soviet 
Asia,  and  he  would  like  very  much  to  take  any  notes  that  you  may  have  and 
bring  history  up  to  date. 

So,  it  rather  embarrassed  me.  As  I  said  in  executive  session,  the 
first  draft  of  this  which  must  have  been  gotten  together  sometime  in 
early  1945  was  altogether  unacceptable  to  the  publisher  and  was  un- 
acceptable to  me  because  it  was  bad  English. 

It  was  not  because  of  any  particular  bias  one  way  or  the  other. 
That  is  from  my  point  of  view,  because  I  was  for  cultivating  the  maxi- 
mum friendly  relations  with  Russia  at  that  time,  very  strongly  for  it. 

So,  he  did  the  job  over  again.     He  put  a  great  deal  of  time  on  it. 


1316  INSTITUTE   OF   PACIFIC   RELATIONS 

As  I  stated  in  executive  session,  it  is  my  recollection  I  turned  over 
to  him  any  royalties  that  had  come  from  the  book  because  he  had  done 
practically  all  the  work  on  it. 

Mr.  Morris.  In  your  check  of  Andrew  J.  Steiger,  did  you  discover 
that  he  had  written  for  the  Daily  Worker? 

Mr.  Wallace.  No. 

Mr.  Morris.  Mr.  Chairman,  I  think  it  would  be  appropriate  if  we 
put  an  article  by  Andrew  J.  Steiger  appearing  in  the  Daily  Worker  in 
the  record,  preceding  the  time  of  this  incident  we  are  taking  testimony 
on  now.  Would  you  accept  into  the  record  an  item  entitled  "May  Day 
at  Magnitogorsk""— and  it  is  dated  x\pril  28,  1934,  page  11,  of  the 
Daily  Worker? 

Senator  Smith.  For  the  purpose  of  identifying  what? 

Mr.  Morris.  Mr.  Wallace  has  testified  he  made  a  check  of  the  quali- 
fications of  Andrew  J.  Steiger  to  prepare  a  book  in  Mr.  Wallace's 
name. 

I  asked  Mr.  Wallace  if  in  making  that  check  he  had  known  that 
Andrew  J.  Steiger  had  written  for  the  Daily  Worker.  Mr.  Wallace 
said  he  did  not. 

I  think  it  is  appropriate  that  that  article  should  go  into  the  record 

at  this  time. 

Mr.  Sourwine.  To  establish  you  were  not  asking  a  question  about  a 
fact  that  was  nonexistent. 

Mr.  Morris.  That  is  right. 

Senator  Smith.  Not  for  the  purpose  of  connecting  Mr.  Wallace  with 
this  particular  article. 

Mr.  Morris.  To  bear  on  the  pertinency  of  my  question. 

Senator  Smith.  That  is  all  right. 

(Document  referred  to  was  marked  "Exhibit  No.  338"  and  is  as 

follows:) 

Exhibit  No.  338 

[From,  the  Daily  Worker,  New  York,  April  28,  1934] 

May  Day  at  Magnitogorsk 

(By  Andrew  J,  Steiger) 

Magnitogorsk  in  bold  relief  is  charted  by  a  mountain,  a  blast  furnace,  and 
workers.  A  metallurgist  could  estimate  the  quality  of  magnetic  ore  in  its 
mountain ;  an  engineer  would  evaluate  the  technical  excellence  of  the  blast  fur- 
nace, which  is  smelting  the  mountain  of  ore ;  but  a  visiting  traveler  singles  out  the 
workers,  the  builders  and  operators  of  the  ore  crushers,  blast  furnaces,  rolling 
mill,  railroad  yards,  coke  plant,  and  socialist  city.  This  is  especially  true  if  one 
visits  Magnitogorsk  on  May  Day,  the  international  holiday  of  labor. 

triumphant  evening 

The  celebration  of  May  Day  begins  the  evening  before  May  1,  a  time  of  sober 
reflections,  exchange  of  compliments,  awarding  of  honors  for  work  well  done.  By 
9  p.  m.  the  workers  of  Magnitogorsk  are  gathered  in  the  circular  auditorium  of  the 
circus.  Lusty  voiced  young  pioneers,  on  one  side  of  the  circus  ring,  sing  out  the 
Song  of  the  Drummer,  The  baritone  voices  of  German  foreign  workers,  stand- 
ing with  upraised  fist,  answer  them  from  the  opposite  side,  singing  the  Rote 
Front.  Speches  begin,  but  somehow,  content  is  unimportant;  while  the  cere- 
mony of  the  celebration  impresses  the  workers  and  engrosses  the  visitors.  Repre- 
sentatives of  the  Society  of  Old  Bolsheviks  present  a  banner  to  the  Magitogorsk 
group  of  young  Communists  (Komsomols). 

Comrade  Sverdlova  tells  the  Komsomols :  "We  cannot  build  slowly  and  easily 
in  the  present  day ;  we  must  build  quickly,  insanely  fast.     The  deepening  crises 


INSTITUTE    OF   PACIFIC   RELATIONS  1317 

abroad,  the  threat  of  war,  the  quickened  tempo  of  life,  all  demand  that  we  work 
speedily  and  create  that  which  will  counteract  the  dangers  around  us." 

This  fighter  of  the  old  generation  of  Bolsheviks  challenges  the  eager  youngsters 
of  the  new. 

Fadeev,  leader  of  the  local  branch  of  the  Young  Communist  League,  responds, 
"In  our  ranks,"  he  says,  "there  is  not  one  member  who  has  failed  to  fulfill  his 
duties.  All  have  gone  over  the  work  norms  set  up  for  them  in  the  production 
plan.  The  lowest  percentage  we  have  made  is  123  percent  and  the  highest  is 
190  percent.  The  brigade  of  Komsomols  working  on  the  excavator  are  the  best 
workers  in  the  plant.  Our  members  have  done  exemplary  work  in  mastering 
new  knowledge  and  getting  familiar  with  the  new  technique." 

Tlie  banner  to  be  presented  to  the  Komsomols  bears  a  quotation  from  Lenin, 
the  slogan,  "Learn  to  build ;  in  building,  learn." 

AN    OLD   BOLSHEVIK    SPEAKS 

Koksovaret,  a  whiskered  warrior  of  the  old  generation,  presents  the  banner. 
With  ardent  fervor,  he  exclaims:  "As  I  rode  across  the  vacant  steppe  toward 
Magnitogorsk  and  passed  the  ridge  of  the  mountain,  from  where  the  smoking 
forest  of  your  furnace  chimneys  hove  into  view  spreading  over  the  rolling  plain, 
I  was  filled  with  ecstasy.  This  city  of  250,000  persons,  this  expanse  of  mills, 
factories,  furnaces,  have  all  appeared  since  I  was  last  here  in  1928 :  when,  with 
other  Bolshevik  planners,  I  looked  across  a  naked  plain  sloping  away  to  the  west 
from  an  ore-ridged  mountain.  I  thought  of  how  governments  built  fortresses 
to  secure  political  fortunes,  and  of  how  we  have  built  here  an  immense  industrial 
stronghold,  ribbed  by  iron  mountains,  surrounded  by  treeless  steppe.  But,  the 
work  of  building  is  nearly  over,  now ;  as  patrons  of  Magnitogorsk  Kombinat,  w© 
we  must  set  new  tasks  for  you.  You  now  face  the  job  of  maintaing  pig  iron 
production  in  the  front  ranks  of  world  producers." 

The  ceremonial  part  of  the  celebration  was  concluded  by  Mueshkov,  head  of 
Magnitogorsk  Kombinat,  who  said: 

"All  the  duties  set  us  by  the  Society  of  Bolshevik  Veterans  will  be  uncondition- 
ally fulfilled.  Although  our  plan  this  year  was  larger  than  in  1931,  we  fulfilled 
it  106  percent  by  April.  "We  now  bend  every  effort  to  complete  the  rolling  mill 
so  that  we  may  turn  the  pig  iron  into  rails  and  other  fabricated  steel  products. 
We  plan  to  make  many  products  now  imported  from  abroad." 

The  ceremony  of  the  giving  of  the  banner  is  brief.  The  workers  are  awarded 
for  a  task  well  done,  the  completion  of  the  construction  of  a  steel  plant  as  large  as 
the  United  States  Steel  Corporation's  plants  in  Gary,  Ind.  Those  workers  who 
have  built  this  giant  of  the  5-year  plan,  in  the  past  4  years  now  face  a  new 
period  in  their  collective  life,  a  period  in  which  they  will  master  the  huge  pro- 
ductive equipment  which  they  have  built. 

Time  slips  by  at  12  o'clock,  a  new  day,  May  Day,  begins  with  an  artistic  per- 
formance. A  pageant  is  staged  portraying  the  history  of  May  Day  in  the  growth 
of  the  working-class  movements.  It  was  a  Red  Day  of  struggle,  sorrow,  and 
oppression.  In  pantomime  the  players  depict  the  arrest  of  workers  who  dis- 
tribute leaflets  advertising  May  Day  celebrations,  show  the  raids  of  police 
on  May  Day  picnic  outings  of  workers  held  in  the  forests,  and  the  shooting  of 
workers  in  a  street  demonstration.  Such  was  the  past,  but  not  all.  For  the  first 
May  Day  celebration  at  Magnitogorsk  was  held  4  years  ago ;  not  a  long  time 
since  that  day,  when  the  pioneer  workers  gathered  here  to  celebrate  May  Day 
on  the  empty  steppe  where  they  were  to  build  this  roaring  giant.  May  Day  at 
Mangnitogorsk  in  1933  is  suggested  by  a  triumphal  procession  of  workers  led  by 
children,  pioneers,  and  Komsomols.  Youth  takes  the  lead  in  this  young  Socialist 
city  with  its  young  blast  furnace ;  youth  celebrates  the  victory  of  the  proletariat. 

We  file  out  the  doors  of  the  circus  at  2 :  30  a.  m.,  May  1.  Clouds  of  smoke  float 
over  the  city  and  the  stars  of  a  clear  night  are  thinly  veiled.  The  noise  of  gas 
exhausts  and  steam  blowers  is  heard.  An  Iridescent  glow  from  molten  metal, 
fired  to  a  high  temperature,  lights  up  the  outlines  of  the  blast  furnace.  This 
child  of  technique,  born  in  the  womb  of  the  5-year  plan,  charges  on  day  and 
night  in  the  first  flush  of  fiery  youth,  not  stopping  to  rest  or  celebrate.  The 
workers  who  attend  it  this  night  are  paid  double  wages. 

THE  DEMONSTRATION 

In  no  other  country  can  one  see  peaceful  parades  of  workers,  marching  men 
and  women,  where  mere  size,  mere  bulk  of  living  bodies  is  so  impressive.  We, 
visitors,  stand  on  the  grandstand  with  the  party  leaders  and  the  plant  managers. 


1318  INSTITUTE   OF   PACIFIC   RELATIONS 

Along  the  unpaved  road  on  the  right  hillside,  a  marching  line  comes  swinging 
down,  a  line  of  people  two  and  a  half  kilometers  long.  In  the  bright  morning 
sunshine,  they  march  and  sing,  men,  women,  children ;  pregnant  women,  women 
with  babes  in  arms,  youth ;  rarely  does  one  see  an  old  or  crippled  person. 

All  are  young,  with  flushed  and  eager  faces,  with  healthy,  muscled  bodies 
dressed  in  bright  garments  and  sport  costumes.  They  march  in  from  the  left 
across  the  center  of  the  square.  They  come  from  all  directions,  along  unpaved 
roads  whose  mud  is  hard-stamped  by  the  pounding  of  many  feet.  They  file  by 
the  grandstand  in  a  line  four  abreast,  in  a  steady  stream  for  1  hour  and  a  quarter, 
a  line  of  90,000  persons,  over  one-half  the  population  of  Magnitogorsk,  an  as- 
sembly of  the  labor  force  which  operates  this  great  blast  furnace,  this  mechanical 
tool  for  smelting  one-third  the  pig  iron  cast  in  the  Urals. 

MANY  GROUPS  TAKE  PART 

Looking  steadily  into  the  moving  stream  of  persons  passing  by  in  front  of  the 
grandstand,  one  sees  banners  flare  up,  sees  the  mass  of  people  break  down  to 
individuals,  till  separate  groups  of  workers  are  identified  and  hailed  by  those  on 
the  reviewing  stand.  The  physical  culturists  in  blue  jerseys  and  dark  trunks 
pass  by  with  springing  steps  or  pedaling  bicycles.  Next,  the  metal  workers  ap- 
pear, those  workers  who  are  rushing  the  rolling-mill  section  to  completion.  A 
rousing  cheer  is  raised  for  them.  Then  come  the  workers  who  built  a  dam  more 
than  a  kilometer  long  and  10  meters  high,  taking  only  465  days  to  do  it  or  less 
by  3  months  of  the  time  given  them  to  do  it.  The  dam  forms  a  lake  25 
kilometers  long;  when  building  it,  these  men,  working  knee-deep  in  mud  and 
water,  and  when  the  temperature  went  as  low  as  35  below  zero,  poured  con- 
crete into  the  dam  foundations  which  had  been  heated  by  steam  pressure. 

A  group  of  assemblers  file  past,  the  welders  who,  hanging  onto  icy  scaffolds 
and  facing  a  bitter  winter  wind  that  tore  in  from  the  open  steppe,  welded  the 
joints  for  the  blast  furnace  gas  lines.  Some  of  them  had  slipped  off  and  did  not 
march  today;  they  were  killed  outright  on  the  scrap  iron  cluttered  about  the 
construction.  Another  one  of  those  absent  today  had  fallen  off  the  scaffold 
Unnoticed  by  the  night  shift  and  froze  to  death  before  aid  reached  him  in  the 
morning.  The  section  hands  file  past,  builders  of  railroads  and  in  their  midst 
are  the  Mongolian,  oval  faces  of  the  Khirghizes,  nomads  of  the  steppes  of  the 
Urals,  and  of  Kazakstan,  tribesmen  of  Ghenghis  Khan  who,  caught  in  the  en- 
thusiasm of  socialist  construction,  drifted  to  Magnitogorsk  and  now  flow  past 
in  this  demonstration  of  the  power  of  the  workers'  government. 

FOREIGN   WORKERS    MARCH 

Here  comes  the  American,  German,  Polish,  Italian  workers  and  specialists, 
who  likewise  were  absorbed  in  the  new  fever  of  construction  which  goes  on  here 
and  everywhere  in  the  Soviet  Union.  The  first-aid  ambulance  goes  by,  represen- 
tatives of  medical  science  stamping  out  filth  and  vermin,  the  breeders  of  typhus, 
that  dread  disease  which  raked  the  population  of  the  Socialist  city.  Although 
there  is  a  circus  here  also,  with  camels  and  band  wagons,  the  children  are  not 
following  it.  The  children  are  ahead,  they  lead  the  parade,  they  form  perhaps 
one-third  of  all  those  marching,  they  come  from  nurseries,  kindergartens,  7-year 
schools,  factory-workshop  schools,  Technikums,  etc. 

Going  by  the  grandstand,  they  proudly  lift  their  banners,  on  which  are  inscribed 
their  school  records,  exhibited  for  the  inspection  of  Comrade  Tarakanova  of  the 
city  committee  of  the  Communist  Party.  He  shouts  from  the  grandstand,  "be 
prepared."  A  roar  of  strident  voices  from  the  marching  line  answers  back, 
"Always  ready." 

Watching  this  demonstration,  which  lacks  all  suggestion  of  cheap  exhibitionism, 
with  ears  tuned  to  the  strains  of  brass  bands  and  the  steady  beat  of  marching 
feet,  one  catches  notes  struck  off  the  holiday  key.  A  locomotive  whistles  on  the 
mountain  to  the  left ;  a  trainload  of  crushed  ore  is  ready  to  descend  to  the  blast 
furnace.  The  ore  crushers  rmnble  faintly  in  the  distance ;  they  dig  into  the 
mountain  of  magnetic  ore  estimated  to  last  for  40  to  70  years.  The  blowing  of 
gas  pipes  and  the  signals  of  the  skip  hoist  mingle  with  the  beat  of  marching 
worlcers'  feet.  The  blast  furnace,  a  colt  in  years,  is  snorting  and  blowing, 
charging  into  the  mountain  of  ore ;  it  has  a  generation  to  smelt  it  down  to  pig 
iron  and  fabricated  steel.  One  feels  the  throb  of  tremendous  forces  let  loose 
on  this  prairielike  parade  ground.  The  ore  will  be  smelted  by  the  power  of  the 
toiling  masses  who  march  by  in  this  seemingly  inexhaustible  stream  of  humanity. 


INSTITUTE    OF   PACIFIC   RELATIONS  1319 

WORLD  PROLETARIAT 

On  the  evening  of  May  1  the  foreign  workers  and  specialists  gather  with 
Russian  comrades  to  celebrate  International  May  Day.  They  gather  in  a  large 
banquet  hall,  where  pickled  fish  and  cold  meats  are  spread  out  beside  bottles  of 
beers  and  light  wines.  The  evening  is  one  of  noise  making;  yet,  withall,  a  few 
speeches  are  made  and  heard.  An  Italian  specialist  speaks  in  Italian.  Although 
none  could  understand  more  than  two  words  of  what  he  said,  these  two  words 
were  enough  to  understand  what  he  meant.  He  denounced  the  "fasciato"  fiercely 
and  pleaded  for  the  "proletariata."  When  the  speech  was  translated  into 
English  and  German  and  Russian  all  were  reassured  that  the  ideas  of  fascism 
and  communism  are  sufficiently  opposed  and  international  to  have  meanings  above 
barriers  of  language  and  country. 

A  German  worker  speaks,  an  American,  a  Russian,  all  give  a  toast  to  Inter- 
national May  Day  and  wish  long  life  to  the  world  proletariat.  They  point  out 
that  workers  abroad  were  not  free  to  celebrate  as  we  do  today ;  that  the  work- 
ing class  there  is  still  under  the  heel  of  capitalism ;  while  here,  the  proletariat 
is  creating  a  new  society,  a  new  industrial  order.  Notes  of  warning  are  struck 
off.  Wreckers  had  been  discovered  amidst  those  engaged  in  socialist  construc- 
tion. They  charged  all  to  be  on  their  guard  against  the  enemy  abroad  and 
within  the  gates ;  to  be  vigilant  against  those  who  would  destroy  the  creations 
of  the  proletariat.  The  banquet  ends ;  the  music  strikes  up ;  the  guests  dance 
in  hilarious  fun  making. 

ON  TO  NEW  YORK 

Three  of  us  go  out  into  the  cool  night  air.  May  1  is  over.  It  is  12  o'clock.  We 
walk  toward  the  glow  of  the  blast  furnace.  A  guard  halts  us.  We  are  without 
passes.  The  Russian  comrade  speaks  to  the  guard ;  we  pass  on.  At  the  furnace, 
the  gas  exhausts  thunder,  deafening  the  -cars.  One  cannot  hear  a  human  voice 
shouted  within  3  inches  of  the  ear.  The  molten  stream  of  metal  is  pouring  from 
the  belly  of  the  plugged  giant,  a  stream  of  molten  iron  so  hot  it  burns  through 
steel  columns,  iron  rails,  concrete  blocks ;  anything  but  fire  clay  it  ignites  and 
reduces  to  ashes.  The  furnace  has  been  working  all  day,  it  does  not  sleep  at 
night,  nor  do  the  guardians  of  the  workers'  land. 

An  official  comes  in.  He  lifts  a  telephone  receiver  and  informs  headquarters : 
"Today,  May  1,  the  first  shift  poured  476  tons  of  pig  iron  and  the  second  shift 
poured  625  tons."  Over  1,000  tons  of  pig  iron  poured  while  the  workers  were 
on  their  holidays.  While  they  rested  and  celebrated,  the  blast  furnace  was 
busy  smelting,  smelting  a  mountain  of  ore,  and  the  OGPU  watched  how  many 
tons  it  melted.  We  are  dismissed.  The  blast  furnace  steams  and  smokes,  blows 
and  flames,  gobbles  up  carloads  of  ore  and  pours  out  a  stream  of  molten  iron. 
When  all  four  units  are  in  operation  it  will  melt  in  1  year  enough  pig  iron  to 
lay  a  railroad  track  around  the  world  or  more  track  than  existed  in  all  Russia 
before  the  Revolution. 

Mr.  SouRwiNE.  Might  this  be  a  good  place  to  revert  just  a  moment 
to  another  matter  which  could  be  taken  up,  with  Mr.  Morris'  per- 
mission ? 

If  I  may  distract  your  attention  from  that,  Mr.  Wallace  for 

Mr.  Wallace.  Yes ;  go  right  ahead. 

Mr.  SouRwiNE.  I  want  to  give  you  the  opportunity  to  comment 
upon  one  short  excerpt  of  your  executive  testimony  with  respect  to 
which  there  might  be  some  confusion  in  the  face  of  your  testimony 
today,  and  ask  you  to  comment  on  it. 

In  executive  session  Mr.  Morris  asked : 

How  is  it  that  Eleanor  Lattimore  came  into  the  picture? 

Mr.  Wallace.  I  don't  really  know.  She  came  to  see  me,  I  know.  She  must 
have  been  speaking  for  someone  higher  up  in  the  institute,  but  who  I  don't  know, 
saying  what  a  fine  thing  it  would  be  to  come  out  with  my  general  expression 
of  views. 

Then  just  a  couple  of  questions  after  that,  Mr.  Wallace,  I  asked 
you: 

Could  it  have  been  Mr.  Wallace,  that  Mrs.  Lattimore  was  the  first  person 
to  contact  you  about  this  book  on  behalf  of  the  Institute  of  Pacific  Relations? 


2320  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Wallace.  It  could  be. 

Mr.  SouRWiNE.  Had  you  known  her  before? 

Mr.  Wallace.  Yes. 

That  appears  to  be  a  conflict. 

Mr.  Wallace.  I  don't  know  that  I  knew  her  before.  I  think  there 
mnst  have  been  an  error  because  I  couldn't  have  said  "yes,"  and  I 
couldn't  have  been  positive.    It  is  probable  I  didn't  know  her  before. 

Mr.  SouRWiNE.  That  should  be  pointed  out. 

Mr.  Wallace.  I  think  that  should  be  corrected. 

Mr.  Morris.  I  would  also  like  to  point  out  the  pertinency  of  this 
book  to  the  inquiries  into  the  Institute  of  Pacific  Relations. 

The  acknowledgment  here  mentions  Owen  Lattimore,  Joseph 
Barnes,  and  Harriett  Moore.    That  has  already  been  read. 

As  a  result  of  this  trip,  and  this  book  is  purportedly  a  report  on 
that  trip,  Mr.  Wallace,  havino;  become  a  member  of  the  board  of 
trustees  of  the  Institute  of  Pacific  Relations 

Mr.  Wallace.  Did  you  say  I  became  a  member  of  the  board  of 
trustees  as  a  result  of  this  book  ? 

Mr.  Morris.  As  a  result  of  the  trip.  Didn't  you  say,  Mr.  Wallace, 
that  you  supposed  because  of  the  fact  you  were  taking  this  trip  the 
institute  had  asked  you  to  become  a  member  of  the  board  of  trustees  ? 

Mr.  Wallace.  Yes ;  that  is  what  I  said.  Possibly  it  is  stating  it  a 
little  too  bluntly.  Should  we  say  because  of  my  sudden  emergence 
because  of  the  trip  I  had  begun  to  appear  in  their  eyes  as  someone 
that  would  be  good  to  have  on  the  board  of  trustees. 

I  also  testified  in  executive  session,  you  may  remember,  that  Edward 
Carter  had  asked  me  to  go  to  a  meeting  of  the  institute  in  1929  in 
Japan.  So  perhaps  it  was  not  exclusively  as  a  result  of  the  trip,  be- 
cause Edward  Carter  had  felt  that  I  was  an  appropriate  person  to  be 
connected  with  the  institute  for  a  number  of  years,  apparently. 

It  goes  back  as  early  as  1929. 

Mr.  Morris.  Also,  Mr.  Chairman,  Mr.  Wallace,  I  would  like  to 
point  out,  has  asked  for  this  hearing  today  principally  because  of 
some  testimony  concerning  the  trip  of  which  this  book  is  a  report. 

Mr.  Wallace.  However,  this  book  is  a  report  not  of  the  section 
concerning  which  I  asked  to  be  heard.  This  book  is  a  report  of  the 
trip  through  Soviet  Asia  and  the  part  which  has  been  brought  up 
before  this  committee  has  to  do  with  my  trip  in  China.  The  book  says 
very  little  about  the  trip  to  China. 

Senator  Smith.  Have  you  finished,  Mr.  Wallace? 

Mr.  Wallace.  I  was  making  the  point  that  I  am  not  coming  here 
as  a  result  of  what  I  am  writing,  what  is  written  in  this  book  on  the 
mission  to  Soviet  Asia.  My  appearance  before  the  committee  is  be- 
cause of  certain  statements  that  have  been  made  with  regard  to  my 
trip  to  China,  not  with  regard  to  my  trip  to  Soviet  Asia. 

Mr.  Morris.  I  do  not  think  your  testimony  restricted  your  trip  to 
China.  We  are  talking  about  the  fact  that  there  were  Communists 
guiding  you  on  your  trip.  I  do  not  think  the  testimony  restricted 
any  part  of  the  trip. 

I  think  it  referred  to  the  whole  trip. 

Mr.  Wallace,  I  have  not  had  the  advantage  of  going  over  the 
testimony  in  detail.  I  had  my  counsel  consult  the  record  to  get  certain 
points,  to  get  as  much  as  they  could  in  the  short  space  of  time  avail- 
able. 


INSTITUTE    OF   PACIFIC   RELATIONS  1321 

So  I  am  not  familiar  with  your  full  record. 

Mr.  Morris.  You  purported  to  quote  from  the  testimony  of  one  of 
the  witnesses  concerning  this  trip, 

]Mr.  Wallace.  Yes.  I  got  from  the  newspapers  a  certain  amount 
of  the  testimony,  but  it  seemed  to  have  to  do  with  China  rather  than 
witli  my  trip  to  Soviet  Asia. 

That  was  the  part  I  had. 

Senator  Smith.  Can  we  not  have  the  understanding  that  if,  upon 
further  examination  of  the  record,  there  is  anything  in  there  that 
Mr.  Wallace  wishes  to  testify  about,  that  he  will  be  given  an  opportu- 
nity to  do  so  ? 

Mr.  Morris.  Mr.  Mandel,  will  you  read  certain  portions  of  that 
book  that  we  have  decided  to  put  into  the  record  today  ? 

Mr.  Mandel.  I  read  from  Soviet  Asia  Mission,  by  Henry  A.  Wal- 
lace, published  in  1946,  page  117. 

Mr.  Wallace.  On  the  front  it  is  by  Henry  A.  Wallace  "with  the 
collaboration  of  Andrew  J.  Steiger."  That  is  the  way  it  appears  here, 
if  you  will  notice. 

Mr.  Mandel.  The  portion  reads : 

The  spirit  and  meaning  of  life  in  Siberia  today  is  certainly  not  to  be  compared 
to  that  of  the  old  exile  days. 

Mr.  Morris.  What  page  is  that  ? 
Mr.  Mandel.  Page  117.     [Eeading:] 

Before  1900  one  foreign  gentleman  of  respected  nationality  visited  Siberia  and 
returned  to  the  Western  World  converted  to  the  benefits  of  the  Czarist  system  of 
exile.  The  political  prisoners,  he  maintained,  were  a  shiftless  lot  of  vagabonds 
who,  to  avoid  the  righteous  discipline  of  hard  work,  ^ed  into  the  woods  v.here 
they  did  notliing  but  rest.  (Stalin  escaped  from  exile  seven  times.)  The  Rus- 
sians generally,  this  gentleman  felt,  were  a  lazy  people  without  enough  seichas 
in  them.  Even  in  the  Siberian  mines  he  found  this  true ;  the  convicts  loafed  in 
chains.  To  his  way  of  thinking  Czarism  was  too  soft  in  its  treatment.  The  con- 
victs should  be  forced  to  work  harder.  To  be  whipped  was  good  for  their  erring 
souls,  the  reverend  gentleman  said.  The  people  of  Siberia  today  are  a  hearty, 
vigorous  race,  but  not  because  they  are  whipped  into  submission.  The  only  whip 
driving  them  is  the  necessity  to  master  a  vast  new  land.  In  the  past  all  of 
Russia,  not  just  the  miserable  convicts  in  Siberia,  was  beaten  lime  and  again  as 
Stalin  has  never  ceased  saying,  by  its  economic  and  political  backwardness,  by 
being -50  years  behind  the  times.  The  need  to  catch  up  with  the  advanced  in- 
dustrial nations  is  the  force  behind  the  great  stirring  movement  among  all  the 
people  of  today's  Soviet  Asia.  Awareness  of  that  need  is  what  makes  them  work 
so  hard.  But  they  also  know  how  to  laugh  and  play  and  sing,  as  we  learned 
during  our  leisure  hours  among  them. 

Mr.  Wallace.  Could  I  comment  seriatim  instead  of  having  a  lot  of 
it  piled  up  ? 

Mr.  Morris.  Yes. 

Mr.  Wallace.  I  may  say,  so  far  as  I  know,  this  was  written  by  An- 
drew Steiger.  He  was  the  one  who  used  the  phrase  ''seichas,"  con- 
tinually. He  used  it  in  several  places  in  the  book.  Just  what  pre- 
cisely the  translation  of  "seichas"  is,  I  don't  know.  It  is  a  very  clear 
indication  to  me  that  Andrew  Steiger  wrote  this  as  he  did  practically 
all  of  the  book. 

I  may  say,  to  me  when  I  read  the  book  over,  as  I  read  it  over  on 
the  job  in  the  Pacific  that  this  reflected  the  situation  as  I  saw  it  when 
I  was  there. 

I  may  say  that  the  book  by  Elinor  Lipper,  I  have  no  doubt  is  sub- 
stantially correct. 


1322  INSTITUTE    OF    PACIFIC   RELATIONS 

Incidentally,  I  may  say  the  original  book  in  German  is  a  much  fairer 
book,  so  far  as  I  am  concerned,  than  the  translation  into  English.  I 
have  had  that  checked. 

With  regard  to  slave-labor  camps  in  Magadan,  she  calls  it  Potemkin 
Village  in  the  German,  which  is  the  correct  name.  She  does  not  indi- 
cate anyway  in  which  I  could  have  known  that  there  was  slave  labor  at 
Magadan. 

My  object  on  the  trip  in  conformity  with  the  spirit  indicated  by  Sec- 
retary Stimson  was  to  promulgate  the  maximum  of  friendship  and 
the  maximum  of  war  effort  on  the  part  of  the  Russians. 

I  was  not  going  out  of  my  way  to  find  slave  labor,  even  if  I  had 
thought  there  was  slave  labor  there  at  that  time.  There  was  no  evi- 
dence that  I  could  see  slave  labor  at  Magadan  where  Elinor  Lipper 
was.     I  do  not  question  the  accuracy  of  Elinor  Lipper's  testimony. 

There  is  no  question  whatever  but  what  the  Russians  did  every- 
thing they  could  to  impress  the  Vice  President  of  the  Nation  which 
had  helped  them  save  their  lives,  as  in  fact,  we  had  by  otir  many 
billion  dollars  of  lend-lease.    They  were  going  all  out  to  impress  me. 

I  don't  know  to  what  extent  they  saw  that  at  every  stage  of  the 
road  there  were  people  present  who  could  convey  this  kind  of  im- 
pression, but  they  did  wherever  I  was. 

I  visited  experiment  station  after  experiment  station,  and  collective 
farm  after  collective  farm.  Always  it  created  a  favorable  and  a  free 
impression  that — well,  Willkie  testified  in  exactly  the  same  way  that 
they  were  a  pioneer  people  just  like  the  kind  of  people  he  had  known 
in  the  Middle  West  back  in  the  time  of  his  boyhood ;  that  Mike  Cowles, 
who  accompanied  Wendell  Willkie,  testified  they  were  a  magnificent 
pioneer  race. 

So  this  statement  of  Andrew  Steiger  is  not  necessarily  the  exclusive 
possession  as  of  1944  of  Communists.  This  attitude  is  not  necessarily 
the  exclusive  possession  of  Communists  because  you  know  from  talking 
with  Willkie  and  Mike  Cowles  on  their  return  that  they  had  an  atti- 
tude very  similar  to  that. 

Mr.  Morris.  Who  else  was  with  them? 

Mr.  Wallace.  Joe  Barnes  was  with  them.  It  may  be  Joe  Barnes 
politically  and  utterly  subverted  Wendell  Willkie.  There  is  always 
that  possibility.    I  don't  think  we  ought  to  agree  to  that  offhand. 

Mr.  Morris.  You  made  reference  to  Elinor  Lipper's  book.  I  would 
like  to  read  into  the  record  that  portion  of  a  book  that  relates  to  your 
trip  to  Magadan. 

Mr.  Wallace.  I  might  say  that  after  you  introduce  that,  I  would 
like  to  introduce  into  the  record  an  article  in  the  Catholic  Digest  that 
it  printed  in  justice  to  me  with  regard  to  Elinor  Lipper,  the  Catholic 
Digest  of  October.  It  is  up  at  the  farm.  I  would  like  to  get  it  to  you 
to  introduce. 

I  see  that  I  have  a  copy  here.    I  can  turn  it  over  to  the  committee. 

Mr.  Morris.  Mr.  Mandel,  will  you  read  the  portions  designated  in 
that  extract  of  the  Lipper  book  ? 

Mr.  Mandel.  I  read  from  a  reprint  from  the  Reader's  Digest  of 
June  1951  from  an  article  entitled  "Eleven  Years  in  Soviet  Prison 
Camps,"  a  condensation  from  the  book  by  Elinor  Lipper.  I  read  from 
pages  12  and  13 : 

No  other  visit  ever  aroused  so  much  excitement  as  Henry  Wallace's  visit  to 
Kolyma  during  the  war.     Some  time  before,  a  persistent  rumor  warmed  the 


INSTITUTE    OF   PACIFIC    RELATIONS  1323 

souls  0/  the  freezing  prisoners ;  in  return  for  help  in  the  war,  the  Soviet  Union 
was  going  to  cede  Kolyma  to  the  United  States.  Even  the  soberest  and  most 
reasonable  of  the  prisoners  conceded  the  possibility,  and  long  discussions  were 
held  as  to  whether  the  prisoners  would  also  be  turned  over  to  America.  It  was 
a  typical  prisoners'  fairy  tale,  as  absurd  as  it  was  tenacious.  And  it  received  a 
tremendous  stimulus  when  news  came  of  the  impending  visit  of  the  American 
Vice  President. 

The  NKVD  carried  off  its  job  with  flying  colors — Mr.  Wallace  saw  nothing 
at  all  of  this  frozen  hell  with  its  hundreds  of  thousands  of  the  damned.  In 
honor  of  Mr.  Wallace  the  wooden  watchtowers  were  razed  in  a  single  night. 
Every  one  of  the  thousand  prisoners  in  the  camp  at  the  port  of  Magadan  at 
the  time  owed  Mr.  Wallace  a  debt  of  gratitude.  For  it  was  owing  to  his  visit 
that  for  the  first  and  last  time  the  prisoners  had  three  successive  holidays. 
During  his  stay,  not  a  single  prisoner  was  allowed  to  leave  the  camp. 

This  was  not  enough.  Although  the  route  for  Mr.  Wallace  and  his  suite  was 
carefully  prepared  in  advance,  there  was  still  the  possibility  that  by  mischance 
the  visitor  would  catch  sight  of  the  prisoners  iu  the  camp  yard — which  would 
not  have  been  an  edifying  spectacle.  Therefore,  on  orders  from  above,  movies 
were  shown  to  the  prisoners  from  morning  till  night  for  3  days.  No  prisoners 
went  walking  in  the  yard. 

Then  further,  I  read : 

Mr.  Wallace  was  also  gratified  to  note  the  rich  assortment  of  Russian  mer- 
chandise in  the  shop  windows  of  Magadan.  He  made  a  point  of  going  into  a 
store  to  examine  the  Russian  products.  But  the  citizenry  of  Magadan  were 
even  more  amazed  than  Mr.  Wallace  at  the  Russian  goods  that  appeared  over- 
night in  the  shop  windows,  because  for  the  past  2  years  all  the — strictly  rationed — • 
goods  which  could  be  bought  had  been  of  American  origin. 

Then  further : 

In  his  book  Soviet  Asia  Mission,  Mr.  Wallace  speaks  with  admiration  of  the 
mushroom  growth  of  Magadan;  he  does  not  say — or  does  not  know — that  this 
city  was  built  solely  by  prisoners  working  under  inhuman  conditions.  He  also 
admires  the  350-mile  Kolyma  Road  that  runs  from  the  port  northward  over 
the  mountains ;  he  does  not  say — or  does  not  know — that  tens  of  thousands  of 
prisoners  had  given  their  lives  in  building  it. 

Mr.  Wallace  says  that  NKVD  Camp  Commander  Ivan  Nikishov  "gamboled 
about,  enjoying  the  wonderful  air  immensely."  It  is  too  bad  that  Wallace  never 
saw  him  "gamboling  about"  on  one  of  his  drunken  rages  around  the  prison 
camps ;  raining  filthy,  savage  language  upon  the  heads  of  the  exhausted  starving 
prisoners;  having  them  locked  up  in  solitary  confinement  for  no  offense 
whatsoever. 

Further : 

In  the  party  accompanying  Mr.  Wallace  was  Dr.  Owen  Lattimore,  who  rep- 
resented the  Office  of  War  Information. 

An  article  New  Road  to  Asia,  written  by  Dr.  Lattimore,  was  published  several 
months  after  his  return  in  the  National  Geographic  Magazine  (December  1944). 
In  it  Dr.  Lattimore  says  : 

"Political  oppression  under  the  czars 

Mr.  W.\LLACE.  Could  I  interrupt  to  ask  you  if  it  is  really  pertinent 
to  read  that  about  Lattimore? 
Mr.  Morris.  Yes,  it  is. 
Senator  SMrrii.  We  will  see  in  a  minute. 
Mr.  Mandel  (reading)  : 

"Political  oppression  under  the  czars  was  so  harsh  that  the  mildest  liberals 
were  often  sent  into  distant  exile.  For  this  reason  university  professors,  doc- 
tors, and  scientists  and  intellectuals  of  all  kinds  were  among  the  earliest  exile 
prisoners  of  Siberia." 

If  Dr.  Lattimore  was  really  interested  in  political  oppression,  why  did  he  not 
inspect  the  hundreds  of  camps  in  Kolyma  where  contemporary  "pioneers  of 
Siberia"  are  starving  to  death?  Why  did  he  not  ask  the  present-day  "inteUec- 
tuals  of  all  kinds"  why  they  are  being  physically  and  mentally  crushed  in  the 
gold  mines  of  Kolyma?    Nowhere  on  the  face  of  the  earth  is  there  a  country 


1324  INSTITUTE    OF   PACIFIC   RELATIONS 

like  Kolyma,  where  the  entire  population  is  made  up  of  victims  of  Qolitical 
oppression. 

Senator  Smith.  Who  wrote  that? 

Mr.  Mandel.  That  is  a  condensation  from  a  book  by  Elinor  Lipper. 
We  have  the  book.  It  is  entitled  "Eleven  Years  in  Soviet  Prison 
Camps." 

Senator  Smith.  She  was  an  inmate? 

Mr.  Mandel.  Yes. 

Senator  Smith.  She  wrote  that  after? 

Mr.  Mandel.  Yes. 

Senator  Smith.  After  reading  Mr.  Wallace's  book? 

Mr.  Mandel.  Yes.    She  is  now  in  this  country. 

Senator  Smith.  We  are  not  going  to  charge  her  statements  in  there 
against  Mr.  Wallace,  are  we?  What  has  that  got  to  do  with  this 
particular  inquiry? 

Mr.  Morris.  Mr.  Chairman,  Mr.  Wallace  has  asked  to  testify  con- 
cerning the  fact  that  Communists  guided  him  on  his  trip  through 
Asia  and  China.  This  is  one  episode  in  Mr.  Wallace's  trip  through 
Asia.    It  bears  on  that  point. 

Senator  Smith.  I  was  thinking  that  might  be  comparable  to  one 
of  us  being  conducted  through  one  of  the  Federal  prison  camps.  Cer- 
•tainly  the  keepers  of  the  prison  would  not  show  us  the  disagreeable 
things — those  things  they  would  not  want  us  to  see. 

Mr.  Wallace.  I  think  it  is  right  to  have  this  in  the  record,  provided 
I  am  allowed  to  make  a  comment. 

Senator  Smith.  Certainly.  I  am  trying  to  get  the  connection  of 
her  statement  with  this  hearing. 

Mr.  Wallace.  I  am  glad  to  have  it  in  the  record. 

Mr.  Morris.  I  think  we  should  have  that  last  section  more  fully, 
the  part  about  Mr.  Lattimore. 

Mr.  Mandei..  I  read  from  page  114  of  the  book,  "Eleven  Years  in 
Soviet  Prison  Camps",  by  Elinor  Lipper,  entitled  "Owen  Lattimore's 
Report" : 

An  article  New  Road  to  Asia,  written  by  Dr.  Lattimore,  was  published  several 
months  after  his  return  in  the  National  Geographic  Magazine,  December  1944, 
pages  641  to  676.  If  his  report  to  the  Office  of  War  Information  was  in  sub- 
stance the  same  as  this  article,  the  Office  could  scarcely  have  profited  by  his 
work.  Since  it  cannot  be  assumed  that  Lattimore  is  naturally  a  poor  observer, 
he  must  on  this  trip  have  voluntarily  refrained  from  making  use  of  his  talent 
for  observation.  Instead  of  telling  us  what  he  has  seen,  he  hands  out  unexamined 
Soviet  propaganda. 

Mr.  Morris.  This,  Mr.  Chairman,  bears  on  whether  or  not  on  this 
trij)  Mr.  Wallace  was  subjected  to  Communist  influence. 

Senator  Smith.  This  woman  is  not  sworn  here.  She  had  not  been 
brought  here  to  testify  where  she  got  this  information. 

Mr.  Morris.  This  is  a  narrative  of  her  experiences  in  the  camp. 

Senator  Smith.  It  is  unsworn.  If  it  is  of  any  probative  value  at 
all,  and  I  have  not  seen  where  it  is — maybe  it  does  have  some  relation- 
ship— should  we  not  have  the  woman  sworn  rather  than  taking  her 
unsupported  statement  ? 

Mr.  Morris.  We  called  her  yesterday  and  asked  if  necessary  would 
she  be  available  for  testimony.  Actually  the  International  Relief 
Committee  now  is  taking  her  around  the  country.  They  have  protested 
our  calling  her. 

If  you  so  direct,  I  will  send  a  sub])ena  to  her  and  have  her  come  in. 


INSTITUTE    OF   PACIFIC   RELATIONS  1325 

Senator  Smith.  They  are  going  to  take  her  around  and  show  her  the 
good  parts. 

If  Mr.  Wallace  has  no  objection  and  wants  to  answer,  he  may. 

Mr.  Morris.  If  Mr.  Wallace  thinks  it  is  necessary,  we  will  have 
her  come  in. 

Mr.  Wallace.  I  do  not  think  it  is  necessary  to  have  her  come  in.  I 
do  not  question  the  accuracy  of  what  she  testified. 

There  is  only  one  point  and  that  was  not  read,  the  accuracy  of  which 
I  would  question.  That  is  where  she  says  I  was  deceived  by  certain 
of  the  people  on  a  hog  farm.  I  know  something  about  hogs  and  I  do 
not  think  Mrs.  Lipper  was  there  at  the  hog  farm.  I  think  she  is  a  little 
bit  outside  her  field  of  competence  on  that. 

Aside  from  that  I  don't  have  any  reason  to  doubt  her  testimony. 

Senator  Smith.  She  is  trying  to  hit  you  on  your  strong  point. 

Mr.  Wallace.  The  point  I  wanted  to  make  was  there  was  an  article 
on  page  44  of  the  Catholic  Digest  of  last  July  which  in  the  way  it  was 
handled  indicated  that  I  should  have  been  able  to  see  the  eviclence  of 
slave  labor  at  Magadan.  It  was  essentially  the  same  article  that  ap- 
peared in  the  Reader's  Digest,  but  there  was  some  caption  that  indi- 
cated I  should  have  been  able  to  see  what  was  going  on. 

I  went  around  out  West  to  see  Father  Bussard  who  published  the 
Catholic  Digest  at  St.  Paul  and  talked  with  him.  I  found  him  a  very 
fine  gentleman.  He  agreed  to  publish  my  statement  and  indicated  that 
he  himself  had  been  at  Buchenwald  before  World  War  came  and  it 
was  all  remarkably  sanitary  and  fine  and  there  was  no  way  to  tell  at 
that  time  what  it  was  later  to  be. 

It  was  one  of  the  German  concentration  camps.  He  was  in  complete 
sympathy  with  what  I  had  said.  This  is  what  he  printed  on  page  44 
of  the  October  issue  of  the  Catholic  Digest,  headed,  "Henry  Wallace 
states  the  facts."    [Reading:] 

(The  article,  Wallace  in  Sovietlancl,  in  the  July  Catholic  Digest,  p.  46,  implied 
that  the  slave-labor  camps  should  have  been  recognized  by  the  American  party 
that  visited  it.     This  note  from  Mr.  Wallace  explains  why  it  was  not. — Ed.) 

There  was  not  the  slightest  evidence  of  a  slave-labor  camp  at  Magadan  when 
I  was  there  in  May  of  1944.  Elinor  Lipper  is  very  careful  to  avoid  saying  that  I 
saw  or  could  have  seen  any  evidence  of  a  slave-labor  camp.  I  am  sure  that  the 
editors  of  the  Catholic  Digest  could  not  have  seen  any  evidence  of  a  slave-labor 
camp  if  they  had  been  in  our  party. 

I  went  to  Magadan  on  my  way  to  China  in  1944  because  John  Hazard,  liaison 
officer  of  the  Division  of  Soviet  Supply  in  Lend-Lease,  wanted  to  see  how  it  was 
being  handled.  Hazard  spoke  Russian,  and  we  went  together  to  the  warehouses 
and  docks  to  see  how  the  material  was  being  handled.  Undoubtedly  the  Russians 
went  all  out  to  make  a  favorable  impression  on  the  Vice  President  of  the  Nation 
which  had  supplied  them  with  so  many  billions  of  dollars  of  vital  goods  in  their 
hour  of  greatest  need. 

Owen  Lattimore  was  not  a  member  of  my  personal  staff.  He  was  selected  and 
sent  with  us  by  Elmer  Davis  to  represent  the  Office  of  War  Information. 

In  those  days,  Roosevelt,  not  knowing  whether  the  atom  bomb  would  go  off  and 
not  knowing  whether  the  second  front  in  France  would  be  a  success,  was  gravely 
concerned  as  to  what  would  happen  to  our  long-time,  over-all  strategy  if  Russo- 
Jap  hostilities  broke  out  before  Germany  was  defeated.  My  purpose  in  visiting 
China  via  Soviet  Asia  in  1944  was  to  win  the  war  against  Germany  and  Japan 
and  not  to  engage  in  espionage  nor  investigate  slave-labor  camps.  It  was  not 
until  long  afterward  that  testimony  began  to  pile  up  from  those  who  had  formerly 
been  in  these  camps.  It  now  seems  to  be  clear  that  the  Soviets  treat  political 
prisoners  in  a  severer  way  than  the  czarist  regime. 

Mr.  Morris.  Have  you  any  questions  in  connection  with  Mr.  Wal- 
lace's trip,  Mr.  Sourwine  ? 


1326  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SouRwiNE.  I  have  a  few  questions  in  connection  with  the  trip. 
Thej  do  not  have  anything  to  do  with  Magadan. 

How  long  before  May  20  when  you  left  did  you  know  you  were 
going  to  go  ? 

Mr.  Wallace.  I  would  say  it  would  be  early  March  that  I  learned 
that  I  was  going  to  go. 

Mr.  SouRWiNE.  You  knew  you  were  going  to  go  before  you  were 
approached  with  regard  to  this  pamphlet  ? 

Mr.  Wallace.  Yes,  definitely. 

Mr.  SouRWiNE.  You  mentioned  the  name  of  Joe  Barnes  a  moment 
ago  and  his  presence  with  Mr.  Willkie  on  his  trip  around  the  world. 

I  believe  in  executive  session  you  testified  that  you  had  seen  Mr. 
Barnes  only  two  or  three  times  between  the  time  of  his  return  from 
the  Willkie  trip  and  the  time  when  he  visited  you  just  before  you  left 
on  your  trip. 

Mr.  Wallace.  That  would  be  my  recollection. 

Mr.  SouRwiNE.  Mr,  Barnes  was  not  a  close  friend  of  yours? 

Mr.  Wallace.  No. 

Mr.  Sourwine.  Can  you  tell  us  why  Mr.  Barnes  visited  you  just 
before  you  left  on  your  trip  ? 

Mr.  Wallace.  I  don't  remember.  The  only  thing  I  remember  about 
it  was  we  spent  our  time  talking  about  Alaska.  That  was  because  he 
had  brought  in  the  general  who  had  constructed  the  Alcan  Highway 
in  Alaska.  I  have  forgotten  his  name.  The  general  had  left  with  me 
the  diary  of  the  man  who  had  built  the  telegraph  line  in  1866  or  there- 
abouts across  Alaska  and  also  in  Soviet  Asia  with  the  idea  that  they 
were  going  to  get  communications  across  that  way  instead  of  by  the 
under-water  cable  that  was  a  little  later  laid. 

His  contact  with  me  at  that  time  was  with  regard  to  Alaska,  which 
he  knew  was  a  passion  with  me,  that  I  felt  it  was  vital  we  get  Alaska 
filled  up  with  people  as  fast  as  we  could. 

Mr.  Sourwine.  Mr.  Barnes'  visit,  then,  did  not  have  anything  to 
do  with  your  forthcoming  mission  ? 

Mr.  Walt^ce.  No.  I  can't  say  that  positively.  I  have  no  recollec- 
tion of  anything  except  Alaska  with  regard  to  him. 

Mr.  Sourwine.  You  testified  in  executive  session,  did  you  not,  that 
you  saw  Mr.  Lattimore  in  connection  with  your  China  mission  in  April 
1944? 

Mr.  Wallace.  Yes ;  I  think  I  must  have  seen  him  in  April  1944. 

Mr.  Sourwine.  At  that  time  did  you  know  he  was  going  with  you  ? 

Mr.  Wallace.  I  don't  know  when  I  learned.  I  know  very  early  in 
the  game  President  Roosevelt  suggested  he  was  a  great  expert  on  that 
long  boundary  line  and  the  way  in  which  the  tribes  had  operated  back 
and  forth  across  that  line  would  likely  affect  the  future  peace  of  the 
world.  He  thought  Lattimore  was  a  great  expert  in  that  field.  I  am 
sure  Roosevelt  suggested  Lattimore's  coming  with  me,  that  he  was  the 
first.     I  am  sure  he  was  the  first  to  suggest  that  Lattimore  go  with  me. 

Mr.  Sourwine.  That  was,  you  think,  perhaps  as  early  as  April  or 
before  that  time? 

Mr.  Wallace.  I  would  think  it  would  be  some  time  in  April.  It 
might  have  been  in  March.    He  was  very  keen  about  Lattimore  going. 

Mr.  Sourwine.  Mr.  Lattimore's  contact  with  you  in  1944,  then, 
which  you  testified,  was  his  first  contact  since  1941  and  was  a  renewal 
in  contemplation  of  the  trip  you  were  to  make  together? 


INSTITUTE    OF    PACIFIC    RELATIONS  1327 

Mr.  Wallace.  Of  course. 

Mr.  SouRwiNE.  Do  you  recall  any  other  Institute  of  Pacific  Rela- 
tions people  who  came  along  to  see  you  about  that  time? 

Mr.  Wallace.  I  was  not  acquainted  with  the  group  aside  from  Ed- 
ward Carter  and  one  contact  with  Owen  Lattimore,  then  the  contact 
with  Mrs.  Lattimore. 

I  do  not  know  that  I  could  name  any  others  I  knew  at  that  time. 

Mr.  SouRwiNE.  You  knew  Mrs.  Lattimore  was  IPR,  of  course? 

Mr.  Wallace.  Yes. 

Mr.  SouRwiNE.  Did  you  know  Mr.  Lattimore  was  IPR? 

Mr.  Wallace.  I  didn't  think  of  him  in  that  connection.  I  couldn't 
say  positively  I  knew  he  was  IPR  at  that  time.  It  would  seem 
to  me  in  retrospect  I  ought  to  have  known  and  possibly  did  know. 

Mr.  SouRwiNE.  Did  you  know  Mr.  Barnes  was  connected? 

Mr.  Wallace.  No,  until  you  stated  in  executive  session. 

Mr.  Sourwine.  It  is  your  testimony  now  you  do  not  recall  any 
other  persons  who  came  to  see  you  about  that  time  whom  you  knew 
to  be  connected  with  the  IPR  ? 

Mr.  Wallace.  No.     I  can't  remember  a  single  point. 

Mr.  Morris.  Mr.  Chairman,  there  are  several  other  extracts  I 
would  like  to  have  read  at  this  time  and  one  in  particular  I  should 
like  to  have  Mr.  Wallace  answer  some  questions  on. 

Senator  Smith.  All  right. 

Mr.  Mandel.  I  read  from  page  142  of  the  same  book,  Soviet  Asia 
Mission.     These  are  excerpts  from  an  address  on  June  15, 1944. 

Preceding  that,  we  find  that  it  says  in  printing  this  talk  the  Soviet 
press  noted  tliat  the  audience  follow^ed  it  with  rapt  attention  and 
.  greeted  the  concluding  words  with  prolonged  applause.  The  speech 
says,  in  part : 

Under  Marshal  Stalin's  wise  leadership  and  inspired  by  the  patriotic  will  to 
improve  the  life  of  the  homeland  the  multinational  Soviet  peoples  have  shown 
that  for  them  nothing  is  impossible.  For  a  long  time  the  world  has  known 
of  their  high  morale  and  democratic  aspirations.  In  your  land  you  have  cher- 
ished science,  literature,  and  art,  raising  them  to  unrivaled  heights,  and  the 
great  men  you  respect  belong  to  all  humanity. 

Mr.  Wallace.  Please  continue  to  read  the  next  paragraph,  if  you 
will. 

Mr.  Mandel  (reading)  : 

People  everywhere  in  the  world  honor  Mendeleyev,  Machnikov,  Pushkin,  Leo 
Tolstoy,  Glinka,  Moussorgsky,  Tschaikovsky. 

I  mi^ht  say  these  are  all  non-Soviet  writers  and  artists. 

Mr.  Morris.  Mr.  Mandel,  will  you  identify  the  book  from  which 
you  are  reading? 

]Mr.  Mandel.  I  am  reading  from  Soviet  Asia  Mission,  by  Henry  A. 
Wallace  and  Andrew  J.  Steiger. 

Mr.  Wallace.  Page  142. 

Mr.  Mandel.  Yes. 

I  read  now  from  page  147  of  the  same  book. 

Alma-Ata,  June  19  (Tass).- — The  Vice  President  of  the  United  States  of 
America  released  the  following  statement  for  publication  in  the  press : 

"On  my  departure  from  your  hospitable  country,  I  want  to  express  my  hearty 
thanks  for  the  cordial  reception  shown  me  everywhere.  I  am  especially  grate- 
ful for  the  thoughtful  courtesy  shown  by  S.  A.  Goglidze,  representing  the  Khaba- 
rovsk Territorial  Executive  Committee ;  by  L.  A.  Malinin,  representing  the  Novo- 

122848— 52— pt.  5 6 


1328  INSTITUTE    OF   PACIFIC   RELATIONS 

Sibirsk  oblast  Executive  Committee ;  by  A.  Z.  Kobulov,  representing  the  Uzbek 
Government,  and  by  D.  S.  Chuvakhin  and  G.  G.  Dolbin,  representing  the  Min- 
istry for  Foreign  Affairs." 

Mr.  MoEKis.  Will  you  read  that  part  about  the  toast  that  Mr.  Gog- 
lidze  proposed? 

Mr.  jMandel.  Yes. 

Mr.  Wallace.  Shall  we  clean  this  up  first  ? 

Mr.  Morris.  Go  ahead. 

Mr.  Wallace.  These  are  extracts  from  speeches  I  made  with  the 
object  of  cultivating  the  greatest  possible  friendship  with  the  Russian 
people  in  order  to  get  them  to  put  forth  the  greatest  magnitude  of  war 
effort.  They  had  been  pushed  back  so  far  in  European  Russia  that  it 
was  especially  important  to  strengthen  the  morale  in  Asiatic  Russia. 

I  was  going  all  out  to  do  that  in  the  kind  of  language  which  they 
understand,  which  is  a  very  extravagant  kind  of  language.  That  is 
exactly  what  I  was  doing  here.  I  don't  think  there  is  any  other  com- 
ment necessary  except  it  was  completely  in  line,  except  what  I  thought 
was  necessary  for  the  war  effort. 

Senator  Ferguson.  What  was  the  date  of  that  release  ? 

Mr.  Wallace.  The  date  of  the  release 

Mr.  Mandel.  June  19,  1944. 

Mr.  Wallace.  Shall  we  go  to  the  other  one  now  ? 

Mr.  Mandel.  On  page  172  of  the  same  book : 

One  night  at  dinner  the  Russian  airman,  Mazuruk,  proposed  a  toast  to  the 
modernization  of  China.    Goglidze  immediately  suggested  a  logical  modification. 

Mr.  Morris.  Will  you  identify  who  Goglidze  is  ? 

Mr.  Wallace.  Mr.  Goglidze  was  the  head  of  the  whole  far-eastern 
area.  He  was  a  Georgian  who  was  said' to  be  a  close  friend  of  Stalin. 
I  do  not  know  that  there  is  anything  further  to  say  about  him  except 
he  was  the  top  man  in  that  part  of  the  world. 

Senator  Ferguson.  A  Communist? 

Mr.  Wallace.  I  did  not  conduct  an  investigation. 

Senator  Ferguson.  You  assumed  that?  I  did  not  ask  you  whether 
you  conducted  an  investigation. 

Mr.  Wallace.  I  assumed  everyone  with  me  was  a  devoted  Com- 
munist in  the  very  highest  graces  with  the  Politburo. 

Senator  Smith.  That  Georgian  you  were  talking  about  was  Georgia, 
Russia,  and  not  Georgia  south  of  Carolina. 

Mr.  Wallace.  Maybe  for  purposes  of  the  record,  if  you  do  not  object 
to  these  interpolations,  that  everybody  designated  by  the  Russian 
Foreign  Office  to  come  with  me  must  have  been  not  merely  a  Com- 
munist but  a  man  whom  they  had  double  checked  as  being  the  very 
best  kind  of  a  person  to  send  with  me. 

Senator  Ferguson.  For  propaganda  purposes? 

Mr.  Wallace.  For  all  purposes.  One  for  this,  one  for  that  and 
the  other.     That  is  to  be  expected. 

"Wlien  any  man  goes  to  any  foreign  nation  you  expect  that. 

Senator  Smith.  Just  like  we  would  send  good  Democrats  if  we 
wanted  to  show  off  here  to  some  stranger. 

Mr.  Mandel  (reading)  : 

Goglidze  immediately  suggested  a  logical  modification  :  "May  China  remain 
in  the  war."  Without  victory  over  .Japanese  militarism,  China  could  hardly 
have  the  necessary  freedom  for  modernization.  At  dinner,  after  our  return 
from  China,  Goglidze  offered  a  significant  toast  to  "Owen  Lattimore  and  John 


INSTITUTE    OF   PACIFIC    RELATIONS  1329 

Carter  Vincent,  American  experts  on  China,  on  whom  rests  great  responsibility 
for  China's  future. 

Then,  on  the  next  page,  173,  I  read  one  more  excerpt.  _  The  future 
of  Japan  was  the  topic  of  discussion  which  John  Carter  Vincent  wants 

initiated. 

'"^^Hiat  should  be  done  with  Japan  after  the  war  ?"  he  asked. 

"The  same  as  with  Germany,"  one  Russian  present  replied. 

Senator  Ferguson.  Mr.  Wallace,  do  you  consider  this  toast  of  suffi- 
cient importance  that  you  must  have  made  a  memorandum  of  it  at  the 
time  that  it  was  made  ? 

Mr.  Wallace.  Yes. 

I  may  say  that  insofar  as  I  can  find  in  my  memorandum  the  word 
^'significant"  was  not  mine.     It  was  Steiger's. 

Senator  FerCxUSON.  You  approved  the  script,  and  outside  the  word 
"significant" 

Mr.  Wallace.  They  were  not  in  my  notes. 

Senator  Ferguson.  You  were  impressed  at  the  time  this  Russian 
was  proposing  a  toast? 

Mr.  Wallace.  I  may  say  Goglidze  made  three  or  four  other  toasts, 
one  to  me,  one  to  Roosevelt,  and  they  went  the  rounds.  It  was  one 
of  those  regular  Russian  situations  where  you  toast  everybody  under 
the  sun. 

Senator  Ferguson.  That  is  to  enable  you  to  consume  the  vodka? 

Mr.  Wallace.  I  had  begged  off  on  that.  I  may  say. 

Mr.  Sourwine.  In  line  with  Senator  Ferguson  may  I  read  two  ques- 
tions of  the  executive  testimony  and  ask  Mr.  Wallace  to  reaffirm  them 
here? 

Senator  Ferguson.  Yes. 

Mr.  SouRAViNE.  This  episode  had  been  discussed  and  Mr.  Morris 
said  to  the  witness :  "Can  you  recall  that  episode?" 

Mr.  Wallace  had  stated : 

I  am  sui"e  this  is  taken  directly.  I  am  sure  Goglidze  gave  just  exactly  that 
toast. 

Mr.  Morris  said: 

That  quotation  is  from  notes  you  gave  Steiger? 
Mr.  WALI.ACE.  It  must  have  been. 
Mr.  Morris.  Do  you  recall  the  episode? 
Senator  Ferguson.  It  happened,  did  it  not? 
Mr.  Wallace.  Yes ;  it  happened. 

Mr,  Wallace.  That  is  all  quite  accurate.  I  did  not  put  on  the  word 
"significant." 

Senator  Ferguson.  It  impressed  you  this  Russian  Communist  was 
toasting  these  two  men  in  relation  to  their  work? 

Mr.  Wallace.  As  he  did  everybody  else. 

Senator  Ferguson.  Wliy  did  you  not  then  put  in  your  book  the 
other  toasts  ? 

Mr.  Wallace.  Because  I  didn't  know  about  this  hearing. 

Senator  Ferguson.  Is  that  the  only  reason  ?  Do  you  think  if  you 
thought  there  would  have  been  a  hearing  here  you  would  have  put  the 
other  toasts  in  ? 

Mr.  Wallace.  I  think  in  all  fairness — I  would  say  the  other  toasts 
ought  to  have  been  put  in.  If  it  were  going  to  be  a  documentary 
affair,  the  whole  thing  should  have  been  included. 


1330  INSTITUTE    OF   PACIFIC    RELATIONS 

There  were  a  vast  number. 

Incidentally,  Goglidze  did  this  very  subversive  thing.  He  toasted 
the  reelection  of  Roosevelt.  It  was  a  terrible  kind  of  thing  to  do,, 
but  he  toasted  his  reelection. 

Senator  Ferguson.  I  do  think  there  is  some  significance  to  this 
particular  toast.  Here  was  a  man  in  Eussia  that  was  toasting  men  in 
relation  to  their  work  in  China.  I  am  going  to  ask  you  whether  or  not 
he  included  in  the  toast  that  he  proposed  for  you  anything  about  your 
work  in  China  ? 

Mr.  Wallace.  I  do  not  remember  that  he  included  about  my  work 
in  China.  I  think  his  toast  to  me  was :  "May  Mr.  Wallace  come  to 
Moscow  after  the  war." 

I  came  back  with,  "May  you  come  to  Washington  after  the  war." 

Mr.  Morris.  Was  that  selection  of  the  toast  for  the  book  your 
selection  or  Steiger's  selection? 

Mr.  Wallace.  Steiger's.    It  was  not  my  selection. 

Mr.  SouRwiNE.  May  I  offer,  as  we  have  before,  a  short  quotation: 
from  the  executive  testimony  ? 

Senator  Smith.  Yes. 

Mr.  SouRwiNE.  The  question  was  addressed  to  you,  Mr.  Wallace: 

Did  you  transcribe  in  your  notes  the  text  of  all  the  toasts,  20  or  30  toasts  given 
that  evening? 

Mr.  Wallace.  No. 

You  were  selective  about  it  and  you  put  this  one  in  your  notes  so  it  must  have 
impressed  you  at  the  time  as  being  of  some  significance? 

Mr.  Wallace.  It  must  have. 

Mr.  Wallace.  There  were  several  other  toasts  I  put  into  my  notes. 

Mr.  Morris.  You  agree  this  was  the  significant  one? 

Mr.  Wallace.  Steiger  thought  so. 

Mr.  Morris.  Do  you  agree  you  also  thought  it  was  significant  on 
the  basis  of  what  Mr.  Sourwine  just  read  ? 

Mr.  Wallace.  That  is  neither  here  nor  there  because  I  have  verified 
there  were  other  toasts. 

I  wasn't  positive  at  that  time.    There  were  other  toasts. 

Mr.  Morris.  Mr.  Wallace,  do  you  know  what  was  meant  by  the 
expression  "on  whom  rests  great  responsibility  for  China's  future"? 

Mr.  Wallace.  I  can't  read  his  mind. 

Mr.  Morris.  You  do  not  know  what  he  meant  ? 

Mr.  Wallace.  Of  course  not.  Wlio  knows  what  anybody  means  at 
one  of  these  toasting  affairs  ? 

Mr.  Morris.  You  testified  that  was  a  significant  toast. 

Mr.  Wallace.  It  is  significant  that  Steiger  selected  it.  That  is  the 
significant  thing,  and  that  he  put  the  word  "significant"  in.  I  think 
that  is  significant.   What  it  proves,  I  don't  know. 

Senator  Jenner.  I  would  like  to  have  the  executive  hearings  read 
on  this  whole  thing  about  the  toast,  Mr.  Chairman. 

Senator  Smith.  If  you  could  tell  at  what  hour  of  the  evening  these 
coasts  were  given,  that  might  give  some  insight,  too. 

Senator  Jenner.  The  first  part  you  read,  Mr.  Sourwine. 

Mr.  Wallace.  I  will  venture  to  say  I  was  the  only  one  there  that 
would  remember. 

Senator  Smith.  Let  him  read  that  part. 

Mr.  Sourwine.  I  read  from  page  40  of  the  executive  hearings  : 

Mr.  Morris.  Mr.  Wallace,  there  is  just  one  point  I  would  like  to  ask  you  about 
in  this  work.    On  page  172  you  make  reference  here  to  a  dinner  at  which  Mr. 


INSTITUTE    OF    PACIFIC    RELATIONS  1331 

Goglidze,  an  intimate  friend  of  Stalin,  offered  a  significant  toast  to  "Owen 
Lattimore  and  Jolin  Carter  Vincent,  American  experts  on  China  on  whom  rests 
great  responsibility  for  China's  future." 

Can  you  recall  that  episode? 

Mr.  Wallack.  I  am  sure  this  is  taken  directly.  I  am  sure  that  Goglidze  gave 
just  exactly  that  toast. 

Mr.  MoRBis.  That  quotation  is  from  notes  you  gave  Steiger? 

Mr.  Wallace.  It  must  have  been. 

Mr.  Morris.  Do  you  recall  the  episode  itself? 

Senator  Ferguson.  It  happened,  did  it  not? 

Mr.  Wallace.  Yes ;  it  happened. 

Mr.  Morris.  Can  you  recall  anything  more  about  it? 

Mr.  Wallace.  As  I  remember  it,  we  had  been  in  China  and  we  were  trying 
to  get  back  to  the  United  States  as  fast  as  we  could.  We  had  to  go  through 
Soviet  Asia  to  get  back.  The  moment  we  touched  Soviet  Asia  a  Russian  had 
to  be  aboard.  They  wouldn't  allow  an  American  plane  to  go  across  there  without 
a  Russian  aboard.  Also,  they  wanted  to  bid  us  farewell.  They  had  accom- 
panied us  as  we  had  gone  across  Soviet  Asia.    That  is  described  here  in  this  book. 

Now  we  were  leaving  and  this  was  a  sort  of  farewell,  bidding  farewell,  and 
Goglidze  gave  this  toast. 

Senator  Ferguson.  Was  he  a  friend  of  Lattimore  and  Vincent? 

Mr.  Wallace.  He  was. 

Senator  Eastland.  You  do  not  know  whether  he  was  a  prior  friend? 

Mr.  Wallace.  That  is  not  a  complete  transcript  of  what  I  said. 
The  stenographer  must  have  failed  to  take  down  part  of  what  I  said. 

Senator  Ferguson.  Do  you  want  to  add  something  ? 

Mr.  Wallace.  Yes.  I  remember  this  quite  clearly.  Maybe  you  get 
it  from  an  expression  in  the  words,  but  I  know  you  have  the  inference 
very  strongly  when  you  spoke  that  Vincent  and/or  Lattimore  must 
have  known  Goglidze  before.  Maybe  that  appears  subsequent  in  the 
testimony.    I  am  not  sure. 

Senator  Ferguson.  I  think  you  told  us  that  before. 

Mr.  Wallace.  I  said  no,  I  did  not  mean  that  he  had  known  them 
before.  There  is  no  indication  whatsoever  that  Goglidze  had  known 
them  before.    Perhaps  that  is  covered  later. 

Mr.  SouRwiNE.  Go  ahead,  sir. 

Senator  Jenner.  Let  him  testify  and  we  will  go  ahead  with  the 
record. 

Mr.  Wallace.  I  just  merely  wanted  to  say  there  was  no  evidence 
whatsoever  they  were  friends  except  insofar  as  when  you  travel  in 
the  same  plane  for  some  time  you  naturally  engage  in  friendship  as 
anyone  would  in  the  give-and-take  conversation. 

If  you  do  not  mind  my  continuing  with  this,  I  would  say  it  was  very 
natural.  Wlien  I  was  going  through  Soviet  Asia  I  was  relying  continu- 
ously on  John  Hazard,  and  paying  no  attention  to  either  Owen  Latti- 
more or  Jolin  Carter  Vincent.  When  I  was  going  through  China, 
going  along  the  border — we  came  across  Sinkiang — I  was  paying  a 
great  deal  of  attention  to  Owen  Lattimore.  I  looked  on  him  as  an 
expert. 

As  we  went  further,  it  was  Jolin  Carter  Vincent. 

As  far  as  the  Russians  were  concerned,  Lattimore  and  John  Carter 
Vincent  were  with  me  to  handle  Chinese  matters.  It  was  altogether 
appropriate  I  should  look  on  them  as  Chinese  experts. 

Senator  Ferguson.  As  I  understand  it,  there  was  no  indication 
he  had  known  them  prior  to  the  time  that  you  met  ? 

Mr.  Wallace.  Yes. 


1332  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Ferguson.  Therefore,  anything  that  he  was  saying  about 
them  was  in  prior  knowledge,  because  nothing  happened  at  the  meet- 
ing which  would  indicate  that  he  would  use  this  language? 

Mr.  Wallace.  There  is  no  indication  whatever  that  either  Latti- 
more  or  Vincent  had  known  Goglidze  prior  to  the  time  of  my  trip. 

Senator  Smith.  Mr.  Sourwine,  resume,  if  you  will,  please. 

Mr.  Sourwine.  Mr.  Wallace  was  speaking : 

Now  we  were  leaving  and  this  was  a  sort  of  farewell,  bidding  farewell,  and 
Goglidze  gave  this  toast. 

Senator  Ferguson.  Was  he  a  friend  of  Lattimoi'e  and  Vincent? 

Mr.  Wallace.  He  was. 

Senator  Eastland.  You  do  not  know  whether  he  was  a  prior  friend? 

Mr.  Wallace.  It  is  possible. 

Mr.  Wallace.  Did  I  say  that? 

Senator  Jenner.  Let's  hear  the  record,  and  then  you  can  talk. 

Mr.  Sourwine  (reading)  : 

Senator  Ferguson.  Did  he  include  you  in  the  toast? 

Mr.  Wallace.  In  all  of  these  Russian  dinners  they  give  about  30  toasts. 
I  am  sure  he  must  have  given  me  a  toast  as  well. 

Senator  Ferguson.  It  appears  that  he  joined  these  two  in  a  significant  toast. 
I  wondered  how  he  left  you  out  of  that  significant  one. 

Mr.  Wallace.  I  can't  say. 

Senator  Ferguson.  That  indicated  to  me  that  he  was  a  friend  of  theirs,  that 
he  had  known  them  before. 

Mr,  Wallace.  The  preceding  part  there,  I  am  sure,  is  Steiger's  phraseology, 
that  is  the  introduction  to  that  I  am  sure  is  Steiger's. 

As  I  say,  I  didn't  write  any  of  this  book  except  the  agricultural  part  and  a 
little  of  the  introductory  passages.  So  that  while  this,  I  am  sure,  took  place 
as  described,  I  suspect  the  whole  truth  would  indicate  there  were  many  other 
toasts.  I  may  not  have  mentioned  them  to  Steiger,  but  I  know  this  one  took 
place. 

Senator  Ferguson.  I  would  like  to  ask  one  thing.  This  toast  was  "on  whom 
rests  great  responsibility  for  China's  future."  What  did  Lattimore  have  to  do 
with  the  future  of  China? 

Mr.  Wallace.  Let  me  tell  you  about  Lattimore,  so  far  as  I  could  observe  him 
on  this  trip.  He  was  spending  all  his  time  in  the  plane  sweating  excessively, 
and  he  sweats  very  easily,  and  reading  Chinese  classics  out  of  which  occasionally 
he  would  read  something,  and  when  we  were  over  ground  we  went  over  parts 
where  he  had  walked  on  foot,  he  would  tell  us  about  that. 

When  there  would  be  a  museum  he  was  always  on  hand  with  the  archeologist. 

He  was  looked  on  as  a  very  great  expert  in  the  history  of  China  and  the 
relationship  of  the  Chinese  tribes  with  the  Chinese  agriculturalists.  He  may 
have  been  looked  on  by  Goglidze  as  a  man  of  far  greater  importance  than  he  was 
on  the  trip.  I  don't  know  as  to  that,  but  Lattimore  did  speak  a  little  Russian 
and  Goglidze  might  have  felt  a  little  closer  to  Lattimore  on  that  account. 

I  think  probably  you  are  reading  more  into  that  than  is  warranted. 

Mr.  Morris.  You  have  to  concede,  Mr.  Wallace,  that  Goglidze  did  consider 
him  an  important  person? 

Mr.  Wallace.  This  toast  would  indicate  it. 

Mr.  Morris.  And  a  person  on  whom  rested  the  responsibility  of  China? 

Mr.  Wallace.  That  may  be  what  Goglidze  believed,  but  Goglidze  believed  a 
lot  of  things,  as  Russians  often  do. 

I  do  want  to  make  this  completely  clear.  I  am  not  appearing  here  on  behalf 
of  any  person  or  any  organization  or  any  party.  I  am  not  associated  with  any 
person  or  party  or  organization,  and  I  have  no  intention  of  becoming  associated 
with  any.  I  think  that  ought  to  be  very  clear,  that  I  am  not  here  to  defend 
anybody  and  I  am  not  here  to  criticize  anybody  or  any  organization  or  party. 

Senator  Smith.  Mr.  Wallace,  at  the  time  that  toast  was  given  you  did  not  give 
it  any  particular  significance? 

Mr.  Wallace.  I  didn't ;  no.  I  don't  know  why  Steiger  picked  it  up  out  of  my 
notes. 

Senator  Jenner.  In  the  light  of  recent  events,  how  would  you  interpret  that 
toast,  rather  accurate  or  not? 


INSTITUTE    OF   PACIFIC   RELATIONS  1333 

Mr.  Wallace.  So  far  as  I  know,  Lattimore  had  no  particular — I  just  don't  know 
about  recent  developments.  I  haven't  had  the  benefit  of  your  hearings.  I  haven't 
asked  for  any  in  regard  of  me.     I  don't  know  what  the  hearings  showed. 

Mr.  SouRwiNE.  Did  you  transcribe  into  your  notes  the  text  of  all  the  toasts,  20 
or  30  toasts,  given  that  evening? 

Mr.  Wallace.  No. 

Mr.  SouKWiNE.  You  were  selective  about  it  and  you  put  this  one  in  your  notes, 
so  it  must  have  impressed  you  at  the  time  as  being  of  some  significance? 

Mr.  Wallace.  It  must  have. 

Mr.  Morris.  Mr.  Wallace,  in  connection  with  our  testimony  here,  the  testimony 
of  Mr.  Budenz,  you  released  a  report  you  had  given  to  President  Roosevelt  some 
time  back. 

Then  lie  went  on  to  another  matter. 

Mr.  Wallace.  I  think  that  is  substantially  accurate. 

Mr.  Morris.  Mr.  Chairman,  shall  we  go  on,  or  shall  we  have  a  break  ? 

Senator  Smith.  Let  us  go  on  for  a  while. 

Mr.  Wallace.  I  would  like  to  clean  it  up  before  lunch. 

Mr.  Morris.  Mr.  Wallace,  did  you  make  a  report  to  President  Roose- 
velt after  you  returned  from  this  trip  ? 

Mr.  Wallace.  Yes.  If  you  are  starting  on  that,  could  I  read  this 
statement  ?     This  gives  it  more  or  less  seriatim. 

Mr.  Morris.  I  would  rather  you  answer  the  questions  if  the  chair- 
man will  agree. 

Senator  Smith.  You  can  ask  the  question  and  if  Mr.  Wallace  wants 
to  put  this  in,  he  can. 

Mr.  Wallace.  I  did  receive  some  assurance  from  the  chairman  in 
regard  to  reading  this  statement. 

Senator  Smfih.  He  wants  to  ask  some  specific  questions  first. 

Mr.  Wallace.  I  made  a  report  face  to  face  with  President  Roose- 
velt on  July  10,  1944. 

Mr.  Morris.  Did  you  make  a  prior  report? 

Mr.  Wallace.  Yes ;  a  cable  prepared  in  Kunming  in  June  26, 1944, 
and  flown  over  the  Hump  and  then  sent  by  cable  from  New  Delhi 
on  June  28, 1944,  to  President  Roosevelt. 

Mr.  Morris.  Were  these  classified  reports  ? 

Mr.  Wallace.  The  one  that  was  sent  by  cable  was  classified  simply 
because  it  had  been  sent  over  the  air.  I  think  it  had  top  secret,  or 
something  like  that,  on  the  top.  I  did  not  get  the  text  finally  until 
sometime  in  August  1944. 

That  particular  document  I  sent  to  President  Truman.  It  has  the 
date  of  the  receipt  and  the  various  things  at  the  top. 

Mr.  Morris.  You  say  you  sent  that  from  Kunming  ? 

Mr.  Wallace.  That  was  prepared  in  Kunming  and  taken  from  Kun- 
ming— probably  it  was  prepared  in  Kunming  on  the  twenty-sixth  and 
was  sent  from  New  Delhi  on  the  28th  of  June  1944. 

Mr.  Morris.  Why  did  you  send  it  from  New  Delhi  and  not  from 
Kunming  ? 

Mr.  Wallace.  You  could  not. 

Mr.  Morris.  Wliy? 

Mr.  Wallace.  You  couldn't  get  it  to  the  United  States. 

Mr.  Morris.  There  was  no  transmission  facility  ? 

Mr.  Wallace.  That  was  the  Army's  judgment  as  to  the  best  way  to 
get  it. 

Mr.  Morris.  So  you  say  the  Kunming  cables  were  classified  but  the 
report  to  the  President  was  not  ? 


1334  INSTITUTE    OF    PACIFIC    RELATIONS 

Mr.  Wallace.  That  was  my  own  document.  I  would  liave  been 
the  one  who  would  have  classified  it.  I  do  not  have  any  marking 
on  it  saying  that  it  was  classified.  It  was  a  confidential  report.  I 
had  been  sent  as  a  Presidential  emissary.  I  did  look  on  it  as  a  secret 
document.  I  did  not  actually  mark  it  as  such,  although  I  was  Vice 
President  of  the  United  States. 

I  was  not  doing  that  kind  of  thing.  This  was  a  very  special  report 
■directly  to  President  Roosevelt.  I  looked  on  it  as  a  secret  document. 
It  was  not  released  and  apparently  not  sent  by  President  Roosevelt  to 
the  State  Department. 

Mr.  Morris.  This  was  July  10  ? 

Mr.  Wallace.  Yes. 

Mr.  Morris.  Wlien  did  you  first  release  it  ? 

Mr.  Wallace.  Senator  O'Conor  wrote  me  in  December  of  1949  ask- 
ing for  a  copy  of  this.  Apparently  there  had  been  some  agitation 
going  on  about  the  report.  I  do  not  think  he  mentioned  the  agitation, 
but  he  just  asked  for  it.  I  promptly  mailed  it  to  him  in  December 
1949. 

Then  the  agitation  became  stronger. 

I  think  Senator  Ferguson  referred  to  a  report  which  he  understood 
was  in  the  War  Department.  As  a  result  the  reporters  called  me  and 
asked  did  I  know  anything  about  such  a  report.  I  said  yes,  I  had  sent 
such  a  report  to  Senator  O'Conor  and  they  could  doubtless  get  it 
from  him. 

Then  the  report  was  published. 

Mr.  Morris.  So  it  is  your  testimony  that  the  report  was  made  public 
for  the  first  time  in  December  1949  when  you  released  it  ? 

Mr.  Wallace.  It  was  not  actually  made  public  at  that  time.  It  was 
sent  to  Senator  O'Conor  at  that  time,  in  December  1949.  I  did  make 
some  comment  when  the  white  paper  came  out  expressing  surprise  that 
my  report  was  not  included. 

Mr.  Morris.  Where  did  you  make  that  comment  ?  Is  there  a  record 
of  that? 

Mr.  Wallace.  I  don't  know.  I  expressed  it  to  some  newspapermen. 
I  think  it  was  printed  somewhere  in  the  press  rather  inconspicuously. 

Mr.  Morris.  Do  you  know  of  a  publication  called  the  Far  East  Spot- 
light, which  is  published  by  the  Committee  for  Democratic  Far  East- 
ern Policy? 

Mr.  Wallace.  No. 

Mr.  Morris.  Do  you  know  the  Committee  for  Democratic  Far  East- 
ern Policy? 

Mr.  Wallace.  No. 

Mr.  Morris.  Mr.  Chairman,  we  have  introduced  into  the  record  a 
citation  by  the  Attorney  General  showing  that  the  Committee  for 
Democratic  Far  Eastern  Policy  is  a  subversive  organization  and  Far 
East  Spotlight  is  the  publication  of  that  committee. 

I  would  like  to  call  Mr.  Wallace's  attention  to  a  copy  of  this  pub- 
lication date  July-September  1949.  On  page  5  of  that  publication, 
Mr.  W^l^^ce,  there  is  an  article  by  you  m  which  you  quote  rather 
•extensively  from  the  report. 


INSTITUTE    OF   PACIFIC    RELATIONS  1335 

Mr.  SoTjRwiNE.  Mr.  Morris,  that  is  an  article  which  purports  to  be 
by  Mr,  Wallace  as  far  as  this  record  shows  now.  It  has  not  been  estab- 
lished as  yet  as  by  him. 

Senator  Smith.  Let  IVIr.  Wallace  see  that. 

Mr.  Wallace.  I  can  say  this :  I  don't  remember  ever  preparing  any 
article  of  this  sort.  ISIaybe  some  reporter  came  in  and  asked  me  the 
questions  that  are  listed.     These  are  the  views  I  held  in  1949. 

Mr.  MoRPJS.  You  mean  that  is  something  done  without  your  ai^- 
thorization  ? 

Mr.  Wallace.  It  sounds  to  me  like  some  reporter  came  in  and  asked 
me  questions.     That  is  what  it  sounds  like. 

Mr.  Morris.  It  is  what  professes  to  be  your  by  line. 

Mr.  Wallace.  It  is  put  in  the  form  of  questions.  "Question,"  and 
then  "Mr.  Wallace."  It  sounds  like  some  reporter  had  either  mailed 
in  a  series  of  questions  or  had  come  in  for  an  interview  and  I  had 
dictated  it  to  him. 

Mr.  Morris.  It  could  have  been  a  Communist  reporter? 

Mr.  Wallace.  I  don't  have  the  slightest  idea. 

Mr.  Morris.  You  will  note  in  your  answer  to  the  first  question  you 
quoted  extensively  from  this  report  we  have  been  discussmg. 

Mr.  Wallace.  I  quote  a  few  sentences  from  it.  I  don't  know 
whether  this  is  before  or  after  the  white  paper.     Yes,  it  is  after. 

I  had  expressed  already,  I  may  say,  somewhere  in  the  press,  the 
regret  that  the  white  paper  had  not  included  my  report,  and  I  think 
had  substantially  used  these  same  sentences  elsewhere. 

Mr.  Morris.  You  have  testified  you  did  not  release  this  report  until 
December  1949.  This  is  a  publication,  a  Communist  publication, 
July-September  1949  and  it  quotes  extracts  from  your  report. 

Mr.  Wallace.  The  extracts  they  quote  are  this : 

Chiang,  at  best,  is  a  short-term  investment.  It  is  not  believed  that  he  has  the 
intelligence  or  political  strength  to  run  postwar  China.  The  leaders  of  postwar 
China  will  be  brought  forward  by  evolution  or  revolution  and  it  now  seems  more 
likely  the  latter. 

That  is  the  only  quotation  from  the  report.  I  think  that  I  did  give 
substantially  this  quotation  elsewhere  in  the  press.  That  is  my  recol- 
lection, that  I  think  I  expressed  a  question  mark  as  to  why  the  State 
Department  had  not  included.     That  is  the  extent  of  the  quotation. 

I  think  you  must  admit  it  is  not  a  very  extensive  quotation  from  my 
report. 

Mr.  Morris.  It  was  made  available  to  the  Communist  publication. 

Mr.  Ball.  I  would  like  to  call  attention  that  quotation  is  from  the 
July  10  report  which  is  the  one  INIr.  Wallace  made  directly  to  the 
President  and  which  he  has  testified  he  did  not  classify. 

Mr.  Morris.  I  think  the  record  will  show  that.  It  has  been  clear  all 
along. 

Mr.  Wallace.  Could  I  say  this :  To  the  best  of  my  knowledge  this  is 
the  first  time  I  ever  saw  this  publication;  to  the  best  of  my  knowledge 
I  knew  nothing  about  the  antecedents  of  the  man  nor  the  organization 
that  asked  me  those  questions. 

I  can  say  this  is  the  kind  of  thing  I  would  be  saying  at  this  time  if 
I  were  asked  the  questions. 


1336  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Morris.  You  have  written  other  articles  for  that  publication? 

Mr.  Wallace.  Not  that  I  know  of.  I  have  no  awareness  of  it  what- 
soever.   It  is  the  first  time  I  ever  saw  the  publication. 

Mr.  Morris.  There  is  the  Spotlight  for  April  1948,  Mr.  Wallace. 
They  .print  your  statement  there  in  its  entirety. 

Mr.  Wallace.  1  was  never  aware  of  writing  for  this  publication. 
This  publication  to  which  you  call  my  attention  has  a  heading  "The 
following  statement  was  issued  by  Henry  Wallace  through  the  Na- 
tional Wallace  for  President  Committee  in  New  York  on  February  23, 
1948."  It  is  quite  possible  this  other  series  of  questions  was  prepared 
by  somebody  else  and  issued  generally  and  only  printed  by  this  organi- 
zation. 

Mr.  Morris.  The  Spotlight  of  December  1949,  January  1950,  on  its 
masthead,  lists  you  as  a  recent  contributor. 

Mr.  Wallace.   I  suppose  they  are  referring  to  this ;  I  don't  know. 

Mr.  Morris.  At  least  they  considered  it  a  contribution. 

Mr.  Wallace.  I  don't  know  a  thing  about  it. 

Mr.  Morris.  I  would  like  to  have  that  masthead  in  the  record. 

Senator  Smith.  Let  Mr.  Wallace  examine  it  first. 

Mr.  Wallace.  Have  you  been  able  to  find  in  going  over  the  issues 
of  the  Spotlight  as  to  whether  there  is  any  other  communication  that 
purports  to  be  from  me  ? 

Mr.  Morris.   We  will  do  that.     The  record  will  show  the  result. 

Mr.  Wallace.  I  assume  you  must  be  referring  back. 

Mr.  SouRwiNE.  Did  you  offer  for  tJie  record  that  first  volume  of  the 
Spotlight  which  you  discussed  ? 

]Mr.  Wallace.  Somebody  offered  it,  I  think. 

Senator  Jenner.  It  has  not  gone  in. 

Senator  Smith.  You  want  this  to  go  in  also  ? 

Mr.  Morris  Yes.      • 

Senator  Smith.  All  right,  without  objection  they  will  be  made  part 
of  the  record. 

(Documents  referred  to  were  marked  as  "Exhibits  Nos.  339  and 
340,"  and  are  as  follows :) 

Exhibit  No.  339 

What  Next  in  Asia? 

(By  Henry  A.  Wallace) 

(The  leader  of  the  Progressive  Party,  who  as  Vice  President  of  the 
United  States  headed  a  special  mission  sent  to  China  by  President 
Franklin  D.  Roosevelt  in  1944,  answers  three  questions  by  Spotlight. 
He  evaluates  the  white  paper,  sketches  future  possibilities,  and  recom- 
mends democratic  policy  goals  with  regard  to  China  and  the  rest  of 
Asia.) 

Question. — The  State  Department's  white  paper  on  China  says  repeatedly,  in 
reports  dating  back  to  1944,  that  the  Chiang  Kai-shek  government  has  been  cor- 
rupt and  unwanted  by  the  Chinese  people.  It  also  concedes  that  the  Communists 
have  brought  "modern  dynamic,  popular  government."  Secretary  of  State 
Acheson's  letter  of  presentation  says  "nonetheless  we  continued,  for  obvious 
reasons,  to  direct  all  aid  to  the  Central  (Chiang)  Government"  and  intimates 
that  future  United  States  policy  will  be  directed  toward  the  overthrow  of  the 
new  coalition  government  about  to  be  formed  in  China.  What  accounts  for  this 
contradiction? 


rNSTITUTE    OF   PACIFIC    RELATIONS  1337 

Mr.  Wallace.  As  long  as  the  administration  and  the  bipartisan  leaders  of  our 
foreign  policy  are  obsessed  by  hatred  of  Soviet  Russia  and  determined  to  pur- 
sue the  cold  war  they  will  always  find  themselves  in  the  contradiction  you 
point  out.  In  the  name  of  supporting  and  extending  democracy,  we  have  con- 
sistently supported  antidemocratic  governments.  In  the  name  of  opposing  in- 
terference in  the  internal  affairs  of  nations,  we  have  consistently  interfered  our- 

After  I  visited  China  in  1944,  I  reported  to  President  Roosevelt :  "Chiang,  at 
best,  is  a  short-term  investment.  It  is  not  believed  that  he  has  the  intelligence 
or  political  strength  to  run  postwar  China.  The  leaders  of  postwar  China  will 
be  brought  forward  by  evolution  or  revolution,  and  it  now  seems  more  likely 
the  latter."    Everyone  who  knew  anything  about  China  knew  this. 

Mr.  Acheson  admits  that  what  has  happened  was  inevitable  because  of  the 
corruption,  the  backwardness,  the  reactionary  nature  of  Chiang's  regime. 

The  Chinese  Communists  are  triumphing  because  they  offer  land  reform  and 
other  basic  social  changes  needed  by  the  Chinese  people.  They  would  be  win- 
ning even  if  the  Soviet  Union  did  not  exist.  To  call  their  victory  a  victory  for 
Soviet  imperialism  is  of  course  typical  of  the  incredible  hypocrisy  that  per- 
vades our  national  leadership  today.  As  long  as  the  bipartisan  leaders  identify 
all  movements  of  social  reform  and  change  with  Soviet  foreign  policy,  we  will 
find  ourselves  being  allied  with  forces  of  reaction  all  over  the  world  and  we 
will  incure  the  enmity  of  people  everywhere. 

Question. — Secretary  Acheson's  statement  as  to  future  policy  in  Asia  indi- 
cates that  the  United  States  will  back  and  arm  a  Pacific  pact,  including  the  rem- 
nants of  the  Chiang  Kai-shek  regime,  as  requested  by  Philippine  President  Qui- 
rino  on  his  visit  to  Washington.  Could  such  a  pact  succeed?  Would  it  accord 
with  the  interests  of  the  American  people? 

Mr.  Wallace.  I  certainly  do  not  believe  that  a  Pacific  pact  will  succeed  any 
more  than  the  Atlantic  pact  will  and  I  most  emphatically  believe  both  to  be  con- 
trary to  the  interests  of  the  American  people.  All  the  shipments  of  arms  in 
the  world  won't  give  the  people  of  Asia  tools  to  cultivate  their  lands  with,  or 
food  to  feed  their  families  with,  or  clothes  to  hide  their  nakedness.  Yet  tools, 
food,  clothes  are  what  the  Asiatic  peoples  desperately  need,  not  tanks  and  guns, 

A  Pacific  pact  is  supposed  to  halt  aggression  and  strengthen  democracy.  Ac- 
tually, of  course,  it  will  weaken  democracy.  It  will  saddle  the  impoverished 
men  and  women  of  the  Pacific  with  armaments  programs  they  can  ill  afford. 
It  will  stimulate  the  real  aggressor — poverty.  It  will  thus  increase  discontent, 
which  will  in  turn  spur  more  arms  shipments  to  the  Pacific  and  divert  more  of 
Asia's  resources  to  military  use.  It  will  thus  engender  a  vicious  circle  that  will 
defeat  the  very  ends  a  Pacific  pact  is  ostensibly  supposed  to  gain. 

If  the  administration  really  wanted  to  see  Asia  prosper — and  wanted  to  serve 
the  cause  of  international  peace — it  would  immediately  propose  and  back  to 
the  limit  a  world  development  fund  to  be  administered  by  and  through  the 
IJnited  Nations,  to  build  up  the  economies  and  industrial  potential  of  the  na- 
tions of  Asia,  and  provide  a  huge  market  for  American  goods.  It  would  cost 
a  fraction  of  what  we  and  other  nations  are  spending  on  the  arms  race.  It 
would  serve  the  interests  of  the  American  people — and  all  the  peoples  of  the 
world. 

Question. — Do  you  think  the  United  States  should  apply  a  blockade  and  eco- 
nomic boycott  against  the  new  China,  as  now  seems  certain?  Or  should  it  seek 
diplomatic  and  trade  relations  with  it? 

Mr.  Wallace.  The  only  honorable  and  practical  course  first,  is  to  establish 
normal  diplomatic  relations  with  the  new  government  as  soon  as  it  is  stabilized, 
and  second,  to  enter  into  negotiations  for  trade  as  quickly  as  possible. 

As  I  write  this,  there  are  over  5,000,000  unemployed  in  the  United  States. 
China  offers  a  huge  potential  market  for  our  goods — offers  a  trade  that  can 
mean  jobs  for  American  factory  workers  and  maritime  workers.  West  coast 
shipping  would  get  out  of  the  doldrums.  It  would  be  good  business  for  us. 
And  at  the  same  time  it  would  help  stabilize  conditions  in  China  and  make  it 
less  difficult  to  carry  out  economic  and  social  reforms  so  badly  needed  by  the 
Chinese  people.  The  beneficial  effects  would  be  felt  throughout  the  entire  Far 
East. 

A  blockade  and  economic  boycott,  on  the  other  hand,  would  be  both  criminal 
and  stupid.  It  would  create  needless  misery  both  in  China  and  here  at  home, 
and  would  contribute  immeasurably  to  the  instability  which  the  administra- 
tion theoretically  wants  to  end. 


1338  INSTITUTE    OF   PACIFIC    RELATIONS 

Exhibit  No.  340 
Far  East  Spotlight 

(A  monthly  report  on  United  States  policy  and  inteiyial  events  in  China,  Japan, 
Korea,  the  Philippines,  southeast  Asia,  and  India) 

December  1949,  January  1950 

EDITORIAL  committee 

Bernard  Seeman  Susan  Warren 

Elizabeth  Selsbee  Fred  Zeserson 

Ilona  Ralf  Sues 

RECENT  CONTRIBUTORS 

Charles  Bidien  Gerhard  Hagelberg 

Hugh  Bryson  Amado  V.  Hernandez 

William  Capitman  Agnes  Smedley 

Abraham  Chapman  Prof.  Dirk  J.  Struik 

Kathleen  Cronin  Donald  G.  Tewksbury 

Chu  Tong  Heni-y  Wallace 

Hugh  Deane  Richard  Watts,  Jr. 
Shuji  Fujii 

PUBLISHERS 

Committee  for   a  Democratic  Far   Eastern   Policy,   80  East   Eleventh   Street, 
New  York  3,  N.  Y. 
Subscriptions,  $2  a  year  in  the  United  States  and  Canada ;  $3  a  year  abroad ; 
single  copies  20  cents. 

Mr.  Wallace.  I  may  say  at  that  time,  and  for  sometime  prior  to 
this,  I  was  very  greatly  concerned  that  the  United  States  would  become 
embroiled  in  war  with  China. 

As  a  matter  of  fact,  that  went  back  for  several  years  prior  to  this, 
that  we  would  become  embroiled  in  a  war  supporting  the  Chiang  Kai- 
shek  regime  which  I  thought  was  on  its  way  out  and  if  we  stepped  in  to 
support  it,  we  would  be  in  grave  danger  of  getting  into  war  with 
Soviet  Russia. 

I  just  did  )iot  want  American  boys  to  be  spilling  their  blood  in 
China.  I  went  all  out  to  prevent  that.  My  reason  for  getting  into  the 
race  in  1948,  the  Presidential  race,  was  to  do  everything  I  could  to 
bring  the  issue  of  peace  to  the  foreground. 

I  looked  on  the  Asian  situation  as  full  of  dynamite.  Since  then  the 
Forrestal  diaries  came  out  to  give  an  indication  of  the  atmosphere 
that  we  had  lived  in  since  the  fall  of  1945. 

You  will  find  in  November  of  1945  Forrestal  refers  to  a  communi- 
cation from  Wedemeyer  in  which  he  indicates  that  as  early  as  that 
if  we  go  all  out  for  Chiang  Kai-shek  there  is  serious  danger  of  war 
with  Soviet  Union  and  we  should  consider  it,  and  whether  or  not  our 
forces  are  adequate  to  warrant  taking  the  risk. 

That  was  the  situation  as  described  in  the  Forrestal  diaries  in 
November  of  1945. 

Of  course,  that  situation  became  progressively  worse  as  time  went 
on.  The  possibility  of  supporting  Chiang  successfully  became  in- 
creasingly improbable. 

When  I  took  my  action  then  I  was  noc  only  concerned  with  the 
danger  of  the  lives  of  American  boys,  I  wa  s  also  under  the  belief  that 
it  was  altogether  improbable  that  China  and  Russia  could  get  together. 

That  was  the  belief  in  which  I  operated  at  that  time. 

Mr,  Morris.  Mr.  Wallace,  did  anyone  aid  you  in  the  preparation 
of  your  July  10  report  ? 


INSTITUTE    OF   PACIFIC    RELATIONS  1339 

Mr.  Wallace.  I  have  no  recollection  of  anybody  aiding  me  in  the 
preparation  of  the  July  10  report. 

Mr.  Morris.  So  the  wliole  report  is  your  report? 

Mr.  Wallace.  That  is  my  report. 

Mr.  Morris.  What  date  did  you  issue  that  ? 

Mr.  Wallace.  It  was  not  issued ;  it  was  given  to  President  Roose- 
velt face  to  face  on  July  10. 

Mr.  Morris.  When  did  you  arrive  at  Great  Falls,  Mont.  ? 

Mr.  Wallace.  I  don't  remember  exactly;  say  along  about  the  7th 
of  July ;  something  like  that. 

Mr.  Morris.  Did  you  broadcast  from  Seattle  on  July  9  ? 

Mr.  Wallace.  I  did. 

Mr.  Morris.  Where  were  you  on  July  10  ? 

"Mr.  Wallace.  I  was  in  Washington. 

Mr.  Morris.  When  did  you  prepare  the  report,  Mr.  Wallace  ? 

Mr.  Wallace.  I  prepared  a  considerable  part  of  it  at  Great  Falls. 
I  don't  say  that  from  memory,  but  it  would 

Mr.  Morris.  How  long  were  you  in  Great  Falls  ? 

Mr.  Wallace.  Two  or  three  days,  and  then  two  or  three  days  in 
Canada. 

Mr.  Morris.  Did  you  arrive  at  Great  Falls  on  July  8  ? 

Mr.  Wallace.  I  don't  remember  the  precise  date.  It  is  my  recollec- 
tion that  I  had  several  days  in  Canada  and  at  Great  Falls. 

Mr.  Morris.  Do  you  remember  making  a  speech  in  Seattle  on  July 
9? 

Mr.  Wallace.  I  do. 

Mr.  Morris.  It  is  your  testimony  that  you  prepared  the  report 
sometime  between  your  arrival  in  the  country  and 

Mr.  Wallace.  I  had  been  working  on  it  for  some  time.  I  finished 
it  up  in  Canada  and  in  Great  Falls. 

Mr.  Morris.  When  you  say  you  had  been  working  on  it  for  some 
time,  when  were  you  working  on  it  ?     While  in  the  air  ? 

Mr.  Wallace.  Yes.  There  was  a  great  deal  of  time  in  the  air.  I 
happened  to  know  the  Seattle  speech  was  written  at  Krasnoyarsk 
because  I  ran  across  the  handwritten  copy  of  it  the  other  day. 

Mr.  Morris.  It  is  j^our  testimony  after  your  arrival  in  the  United 
States 

Mr.  Wallace.  That  I  polished  the  thing  up  at  that  time. 

Mr.  Morris.  When  did  you  prepare  it  ? 

Mr.  Wallace.  I  can't  say,  sir.  Obviously,  I  was  sent  there  as  a 
Presidential  emissary.  It  was  the  big  moment  of  the  trip,  giving  the 
President  the  report. 

Undoubtedly  I  liad  been  working  on  it  for  some  time.  I  was  polish- 
ing it  up  in  Canada  and  at  Great  Falls,  Mont. 

Mr.  Morris.  Can  you  testify  whether  or  not  anyone  aided  you  in 
preparing  that? 

Mr.  Wallace.  To  the  best  of  my  recollection  I  cannot  testify  that 
anybody  aided  me.  I  had  a  great  variety  of  memoranda  that  had 
been  submitted  to  me.  The  one  who  influenced  me  most  was  Ambas- 
sador Gauss. 

Mr.  SoURw^iNE.  If  I  may  break  in,  Mr.  Morris,  it  may  be  that  the  line 
of  questioning  is  too  much  with  regard  to  conclusion,  and  not  specific 
enough  to  do  justice  to  the  facts  that  you  are  trying  to  present  to  the 
committee. 


1340  INSTITUTE    OF   PACIFIC    RELATIONS 

Preparation,  for  instance,  encompasses  a  great  many  things. 

Is  it  a  fair  assumption  that  at  some  time  or  another  portions  of  this 
report  were  written  out  by  you  in  longhand  ? 

Mr.  Wallace.  I  assume  they  might  have  been.  I  really  don't  know. 
I  did  run  across  this  Krasnoyarsk  thing  in  longhand  or  the  Seattle 
thing,  which  was  written  at  Krasnoyarsk. 

I  have  gone  through  my  records  and  I  find  nothing  in  longhand 
on  this. 

Mr.  SouRwiNE.  I  wasn't  asking  about  your  records;  just  your  mem- 
ory.   Do  you  remember  writing  any  of  this  report  out  in  longhand? 

Mr.  Wallace.  I  must  have. 

Mr.  Sourwine.  Do  you  remember? 

Mr.  Wallace.  I  don't  know  specifically.  I  was  utterly  surprised 
to  see  I  had  written  the  Seattle  thing  in  longhand.  If  anybody  asked 
me  about  that,  I  wouldn't  have  remembered  it. 

Mr.  SouRWiNE.  Do  you  remember,  Mr.  Wallace,  whether  any  of 
this  report  was  written  out  on  a  typewriter  ? 

Mr.  Wallace.  I  am  sure  it  was. 

Mr.  SouRwiNE.  Did  you  write  any  of  it  out  on  a  typewriter? 

Mr.  Wallace.  I  think  I  did. 

Mr.  SouRWiNE.  Where  did  you  write  some  of  it  out  on  a  type- 
writer ? 

Mr.  Wallace.  I  don't  know. 

Mr.  SouRWiNE.  Did  you  have  access  to  a  typewriter  on  the  air- 
plane coming  across  back  to  this  country  ? 

Mr.  Wallace.  I  didn't  use  a  typewriter  on  the  airplane  myself. 

Mr.  SouRWiNE.  Did  you  have  access? 

Mr.  Wallace.  I  am  not  sure.  There  must  have  been  a  typewriter 
there. 

Mr.  SouRwiNE.  Do  you  know  whether  they  did  or  did  not  have 
one? 

Mr.  Wallace.  I  think  so. 

Mr.  SouRwiNE.  Did  you  use  it  ? 

Mr.  Wallace.  I  don't  remember. 

Mr.  SouRwiNE.  Did  anyone  else  type  any  portions  of  this  on  a 
typewriter  on  the  way  back  ? 

Mr.  Wallace.  I  don't  know. 

Mr.  SouRwiNE.  Can  you  say  no  one  did  ? 

Mr.  Wallace.  I  can't  answer. 

Mr.  SouRwiNE.     You  mean  someone  might  have  typed  it? 

Mr.  Wallace.  Yes. 

Mr.  SouRwiNE.  Do  yon  know  whether  any  of  it  was  typed  before 
you  started  back  ? 

Mr.  Wallace.  I  would  think  it  must  have  been. 

Mr.  SouRwiNE.  Do  you  know  whether  it  was  ? 

Mr.  Wallace.  No. 

Let  me  illustrate  how  difficult  it  is  to  remember  specifically  on  a 
thing  of  this  sort.  There  has  been  certain  discussion  as  to  what 
transpired  at  a  Cabinet  meeting  back  in  September  of  1945.  I  have 
called  up  one  person  wiio  was  there  who  certainly  should  remember 
it  and  can't  even  remember  the  incident  at  a  very  important  Cabinet 
meeting.  That  illustrates  what  I  mean.  This  is  a  man  who  is  much 
younger  than  I.  That  illustrates  how  impossible  it  is  to  remember 
with  accuracy,  and  how  impossible  it  is  to  draw  conclusions  from 


INSTITUTE    OF   PACIFIC   RELATIONS  1341 

yesses  or  noes  this  way,  that  way,  or  the  other  way,  no  matter  ho^^^ 
the  questions  are  answered. 

Mr.  SouRwiNE.  I  am  not  attempting  to  draw  conclusions,  nor  am 
I  challenging  your  memory,  sir.  I  am  trying  to  assist  it  by  asking 
questions  you  might  recall. 

Was  there  eventually  a  typewritten  draft  of  this  which  you  could 
and  did  go  over? 

Mr,  Wallace.  I  presented  a  typewritten  copy  to  President  Roose- 
velt.   That  is  all  I  can  say. 

Mr.  SouEwiNE.  Certainly  you  know  whether  you  went  over  that 
typewritten  copy  before  you  presented  it  ? 

Mr.  Wallace.  Of  course,  I  did. 

Mr.  Sourwine.  Then  there  was  at  that  time  a  typewritten  draft 
which  you  went  over  ? 

Mr.  Wallace.  Yes. 

But  you  say  "was  there  a  typewriter  on  the  plane." 

Mr.  Sourwine.  That  was  a  previous  question. 

Mr.  Wallace.  I  sny  I  assume  there  was  a  typewriter  on  the  plane. 
Whether  it  was  typewritten  with  a  typewriter  on  the  plane,  or  a  type- 
writer that  was  at  Great  Falls,  or  a  typewriter  that  was  at  Great 
Prairie,  or  at  Edmonston,  in  Canada,  or  whether  it  was  typewriter 
that  was  available  some  place  else,  I  don't  know. 

Mr.  Sourwine.  I  am  sure  we  can  get  a  little  further  along  on  this. 
We  have  established  there  was  a  typewritten  draft  of  the  report  which 
you  went  over  before  you  presented  it  to  the  President? 

Mr.  Wallace.  Certainly. 

Mr.  Sourwine.  That  was  a  clean  copy  ? 

Mr.  Wallace.  Yes. 

Mr.  Sourwine.  You  would  not  have  presented  one  that  was  messed 
up  or  a  rough  draft  ? 

Mr.  Wallace.  No. 

Mr.  Sourwine.  Can  you  tell  us  where  you  got  that  clean  copy  ? 

Mr.  Wallace.  No. 

Mr.  Sourwine.  Did  you  type,  it  yourself  ? 

Mr.  Wallace.  No  ;  I  did  not. 

Mr.  Sourwine.  Do  you  know  who  did  type  it? 

Mr.  Wallace.  That  was  too  clean  a  typing  job  for  me.  No,  I  can't 
testify  as  to  that.    I  don't  know. 

Mr.  Sourwine.  Do  you  have  any  idea  as  to  who  might  have  typed 
it?  ' 

Mr.  Wallace.  No. 

Mr.  Sourwine.  You  mean  that  someone  presented  you  with  a  clean 
draft  of  a  message,  a  report  you  were  going  to  give  the  President  of 
the  United  States  and  you  have  not  any  idea  where  it  came  from  ? 

Mr.  Wallace.  That  has  happened  perhaps  5,000  times  in  my  Wash- 
ington life. 

Mr.  Sourwine.  Mr.  Wallace,  do  you  recall  whether  there  was  any 
prior  draft,  a  rough  draft  of  any  sort,  of  this  report? 

Mr.  Wallace.  I  can't  say,  sir. 

Mr.  Sourwine.  Do  you  recall  ever  having  seen  a  prior  draft  of  it? 

Mr.  Wallace.  I  can't  say. 

Mr.  Morris.  Who  was  with  you  on  the  trip  at  that  time,  Mr,  WaL 
lace  ? 


1342  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Wallace.  As  I  was  saying,  the  people  on  the  trip,  and  it  was 
the  same  personnel  throughout  except  inside  excursions  in  China 

Mr.  Morris.  But  the  trip  from  Great  Falls  to 

Mr.  Wallace.  The  same  people.  You  had  John  Hazard,  Owen 
Lattimore,  John  Carter  Vincent,  and  the  members  of  the  crew. 

Senator  Ferguson.  In  other  words,  they  left  here  and  made  the 
whole  trip  with  you  ? 

Mr.  Wallace.  Yes.  ijiey  made  the  whole  trip. 

Mr.  Morris.  I  hav;     o  more  questions  on  that. 

Mr.  SouRWiNE.  I  hu.v^e  one  or  two  more. 

I  don't  mean  to  be  unduly  repetitious,  but  sometimes  a  memory  will 
come  back  if  you  try  to  think  about  it.  I  am  sure  it  must  be  as  in- 
credible to  you  as  to  us  that  you  have  no  memory  whatsoever  of 
whether  you  saw  a  rough  draft  of  the  statement,^  or  not. 

Mr.  Wallace.  I  do  not  think  it  is  incredible  in  the  slightest,  sir. 
I  have  been  so  active  over  so  many  years  that  with  regard  to  a  minor 
matter  of  this  sort,  I  see  nothing  incredible  about  it. 

I  would  say  it  would  be  remarkable  if  I  did  remember.  If  you 
were  in  a  similar  position — I  judge  you  are  about  the  same  age  as  I — 
and  you  were  testifying,  you  would  find  yourself  in  the  same  situation. 

Mr.  SouRwiNE.  I  am  sure  I  am  not  asking  you  to  testify  beyond 
your  best  recollection. 

Mr.  Wallace.  I  can't ;  that  is  all. 

Mr.  SouRwiNE.  This  report  was  handed  to  the  President  on  what 
date? 

Mr.  Wallace.  On  July  10, 1944. 

Mr.  SouRwiNE.  Have  you  any  idea  how  long  this  report  had  been 
in  preparation  ? 

Mr.  Wallace.  I  really  can't  say  that. 

Mr.  SouRWiNE.  Could  it  have  been  in  preparation  as  long  as  2 
weeks  ? 

Mr.  Wallace.  I  would  say  so. 

Mr.  Sourwine.  Could  it  have  been  in  preparation  as  long  as  3 
weeks  ? 

Mr.  Wallace.  That  is  pure  supposition. 

Mr.  Sourwine.  Could  it,  Mr.  Wallace  ? 

Mr.  Wallace.  You  would  have  to  consult  the  dates. 

Mr.  Sourwine.  What  dates  do  we  have  to  consult  ? 

Mr.  Wallace.  The  dates  when  I  was  in  China.  It  could  not  have 
been  in  preparation  longer  than  June  20. 

Mr.  Sourwine.  It  could  not  have  been  in  preparation  longer  than 
June  20? 

Mr.  Wallace.  That  was,  roughly,  the  day  I  arrived  in  China.  I 
began  taking  notes  when  I  arrived  in  China. 

Mr.  Sourwine.  You  do  remember  the  notes  that  you  took.  What 
did  you  do  with  the  notes  as  you  took  them? 

Mr.  Wallace.  I  can't  say. 

Mr.  Sourwine.  Did  you  stuff  them  in  a  pocket,  or  hand  them  to 
somebody  to  put  away  ?     You  kept  your  notes  ? 

Mr.  Wallace.  I  did  until  I  got  this  out  of  my  system. 

Mr.  Sourwine.  Do  you  know  where  you  kept  them  ? 

Mr.  Wallace.  No. 

Mr.  Sourwine.  Did  you  have  any  particular  place  where  you  accu- 
mulated your  notes? 


INSTITUTE    OF    PACIFIC    RELATIONS  1343 

;Mr.  Wallace.  I  stuffed  them  away  in  a  bag  I  had  with  me. 

Mr.  SouRWiNE.  Do  you  remember  at  any  time  ever  taking  them  out 
of  that  bag  ? 

Mr.  Wallace.  I  have  no  recollection  at  all. 

Mr.  SouRWiNE.  You  must  have  taken  them  out  if  at  some  time  you 
used  them. 

Mr.  Wallace.  Sir,  I  just  don't  know.  Tho/  is  all  I  have  to  say. 
Your  questions,  no  matter  how  they  are  phr?  ?d,  will  get  no  other 
answer,  because  I  don't  know. 

Mr.  SouRWiNE.  I  believe  you,  sir,  but  pardon  me  if  I  keep  trying. 
You  will  recognize  that  you  must  have  taken  the  notes  out  of  that 
bag  at  some  time. 

Mr.  Wallace.  The  answer  to  that  is  obvious. 

Mr.  SouEwiNE.  Obviously  you  did?     Is  that  true? 

Mr.  Wallace.  I  don't  want  to  be  impolite,  sir.  What  are  you 
really  getting  at  ?     What  are  you  trying  to  do  ? 

Mr.  SouRwiNE.  I  am  trying  to  find  out  if  we  cannot  recapture  one 
fragment  of  your  memory  with  regard  to  when  and  under  what  cir- 
cumstances you  began  the  preparation  of  the  first  rough  draft  of  this 
report  from  your  notes. 

Mr.  Wallace.  I  just  don't  know. 

Mr.  SouR"\viNE.  I  was  trying  to  establish  if  you  recognize  the  fact 
that  you  must  have  taken  these  accumulated  notes  out  of  the  bag  at 
some  time  and  perhaps  you  could  remember  where  or  when? 

Mr.  Wallace.  I  just  don't  know. 

Senator  Smith.  Is  it  not  possible  that  his  secretary  might  have 
taken  them  out?  I  have  handed  my  bag  to  my  secretary  and  then 
when  I  got  back  to  the  office  I  had  things  taken  out. 

Mr.  SouRwiNE.  I  was  trying  to  avoid  making  suggestions  as  to  pos- 
sibilities. 

Senator  Smith.  That  is  understandable  to  me. 

Mr.  SouRwiNE.  Could  it  have  been  in  preparation,  this  draft,  all 
the  time  from  the  time  that  you  got  to  China  until  you  presented  it  to 
the  President? 

Mr.  Wallace.  Obviously  it  would  be  continuously  in  preparation. 

The  final  shaping  up,  I  would  say,  just  looking  at  the  time  factor, 
must  have  taken  place  in  Canada  and  at  Great  Falls.  That  is  not  on 
the  basis  of  memory,  but  on  the  basis  of  time. 

This  whole  thing  is  simply  logical  reasoning  back  on  the  basis  of 
time  and  not  on  the  basis  of  memory. 

Mr.  SouRWiNE.  That  is  all  I  am  trying  to  do,  reason  back. 

Was  it  prepared  subsequent  to  the  Kunming  cables,  sir? 

Mr.  Wallace.  I  would  say  that  part  of  it  must  have  been.  It  might 
have  been  that  part  of  it  was  prepared  at  Kunming  because  I  did  have 
some  time  there. 

Mr.  SouRWiNE.  The  Kunming  cables,  I  think  you  have  stated — and 
I  do  not  want  to  go  into  this  fully — but  is  it  not  true  in  connection  with 
the  Kunming  cables  you  consulted  with  Vincent  to  some  considerable 
extent? 

Mr.  Wallace.  Yes. 

Could  I  get  around  to  this  statement  pretty  soon  ? 
Mr.  Sourwine.  Your  statement  shows  you  did. 
Mr.  Wallace.  Yes. 


22848— 52— pt.  5- 


1344  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SouRwiNE.  In  that  connection  you  have  testified  that  with  re- 
gard to  this  report  you  did  not  consult  anyone  about  it  and  no  one  aided 
in  the  preparation  of  it? 

Mr.  Wallace.  That  is  right. 

Mr.  SouRwiNE.  It  was  on  that  basis  I  was  assuming  it  was  pre- 
pared after  the  Kunming  cables. 

Mr.  Wallace.  I  don't  mean  to  make  an  assumption  if  it  is  improper. 
It  does  not  necessarily  follow. 

Mr.  SouEwiNE.  You  might  have  that  report  and  had  been  working 
on  it  all  the  time,  but  not  consulted  anyone  when  you  were  consulting 
about  the  Kunming  cables. 

Mr.  Wallace.  It  is  quite  possible. 

Mr.  SouRwiNE.  Although  the  report  follows  and  summarizes? 

Mr.  Wallace.  Yes.  After  all,  there  is  quite  an  extended  discussion 
of  what  took  place  in  the  Province  of  Sinkiang. 

Mr.  SouRWiNE.  Have  you  made  a  real  effort  to  recall  any  circum- 
stances about  that  report  that  you  could  along  the  line  of  the  ques- 
tions  ? 

Mr.  Wallace.  I  have  given  you  all  that  I  can. 

Mr.  SouRwiNE.  You  made  a  real  effort  to  recall  and  you  can't  ? 

Mr.  Wallace.  I  just  don't  know. 

Senator  Smith.  Senator  Ferguson. 

Senator  Ferguson.  The  cables  seem  clear  to  you  at  the  present  time 
as  to  how  they  were  prepared  ? 

Mr.  Wallace.  Yes.  That  was  a  very  dramatic  moment.  I  have  had 
conferences  with  Mr.  Alsop  with  regard  to  that  and  have  verified  my 
memory  by  consulting  with  him.  I  first  consulted  with  him  at  the 
time  Mr.  Kohlberg  wrote  me  in  August  1950,  with  regard  to  it.  I 
called  up  Joe  Alsop  at  that  time. 

Mr.  SouRwiNE.  You  had  your  memory  refreshed  on  the  Kohlberg 
letter? 

Mr.  Wallace.  My  memory  had  been  very  abundantly  refreshed 
because  of  this  correspondence  with  Kohlberg  and  by  calling  up  Joe 
Alsop,  and  Joe  Alsop  is  a  younger  man  than  I. 

The  Kunming  thing  occupied  a  more  important  part  in  his  life  than 
mine.  That  was  a  high  point,  to  be  sitting  in  with  the  Vice  President 
and  working  with  him.  No  doubt  his  memory  is  very  accurate  in  that 
respect. 

Mr.  SouRwiNE.  Did  he  have  memoranda  when  he  came  to  you  in 
relation  to  refreshing  your  memory  ? 

Mr.  Wallace.  When  I  phoned  him  with  regard  to  Kohlberg's  letter  ? 

Mr.  SouRwiNE.  Yes. 

Mr.  Wallace.  I  didn't  see  him  face  to  face  at  that  time. 

Mr.  SouRwiNE.  You  talked  on  the  phone  ? 

Mr.  Wallace.  Yes. 

Mr.  SouRwiNE.  Recently  has  he  had  any  memoranda  to  refresh  your 
memory  on 

Mr.  Wallace.  I  don't  think  so.  He  was  so  much  an  intimate  part 
of  that  whole  China  picture  for  so  many  years,  I  don't  think  he  needed 
my  memoranda. 

Mr.  SouRwiNE.  Have  you  consulted  Owen  Lattimore  in  relation  to 
this? 

Mr.  Wallace.  Not  at  any  time. 

Mr.  SouRwiNE.  Have  you  consulted  Vincent? 


INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Wallace.  Not  at  any  time. 

Mr.  SouRWiNE.  Hazard?  . 

Mr.  Wallace.  Not  at  any  time  with  regard  to  this.    Yes,  with  regara 

to  another  point.  rr^i       •       t, 

Mr.  SouRwiNE.  So,  you  have  consulted  just  one.    That  is  why  you 

have  a  clear  memory  on  the  cables? 

Mr.  Wallace.  Yes.    I  have  had  abundant  check  and  cross-check  on 

Mr.  SouRwiNE.  You  did  not  try  to  check  with  anyone  about  the 
message  to  the  President?  ,  ■,  t  i      ^    ^ 

Mr.  Wallace.  I  understand  that  Owen  Lattimore  and  John  Carter 
Vincent  have  testified  or  written  that  they  had  nothing  to  do  with  it. 
I  don't  know  just  how  correct  that  is.  I  don't  know  whether  it  was  m 
the  press  or  where.    I  saw  it  somewhere. 

Mr.  Sourwine.  So  there  will  be  no  false  implication,  what  you  mean 
is  you  have  no  idea  how  true  it  is  whether  they  so  testified  ? 

Mr.  Wallace.  I  really  don't  know  whether  they  so  testified.  It  was 
in  one  of  the  newspaper  columns.  I  saw  it  stated  that  John  Carter 
Vincent  had  written  somebody,  probably  Kohlberg,  saying  he  had  not 
taken  part. 

Mr.  Sourwine.  But  it  has 

Jklr.  Wallace.  I  have  no  recollection  of  John  Carter  Vincent  work- 
ing with  me  on  this  report. 

^Ir.  Sourwine.  Or  Mr.  Lattimore? 

Mr.  Wallace.  Or  Mr.  Lattimore. 

Mr.  Sourwine.  You  had  testified  no  one  worked  with  you  ? 

Mr.  Wallace.  Yes.     I  have  no  recollection. 

Mr.  Morris.  You  do  recall  they  were  on  the  plane? 

Mr.  Wallace.  They  were,  definitely. 

Mr.  Morris.  With  respect  to  the  Kunming  cables  about  which  you 
have  a  vivid  recollection  at  the  time  of  their  preparation,  what  about 
those  ? 

Mr.  Wallace.  That  was  a  rather  dramatic  occasion,  because  it  was 
at  Kunming  after  talking  with  General  Chennault  that  I  appreciated 
how  terrifically  serious  the  Chinese  situation  was. 

Mr.  Morris.  Was  it  July  10  you  did  not  consider  that  report  serious? 

Mr.  Wallace.  The  big  point  of  the  trip  was  the  call  to  action.  I 
was  there  on  a  military  mission  essentially. 

Wlien  I  sent  that  statement,  I  was  suggesting  very  specific  action 
that  I  thought  could  save  the  military  situation.  The  report  of  July 
10  was  more  or  less  a  narrative,  a  rather  simple  narrative  discussion 
of  where  we  went  and  what  we  found. 

It  is  a  travelog  kind  of  thing.  I  have  been  engaged  in  travelog 
descriptions  ever  since  1909.  I  have  written  them  up  for  the  papers, 
gone  here  and  there.  This  is  largely  a  travelog  thing,  except  the  con- 
clusion. 

There  was  a  specific  suggestion  with  regard  to  how  the  Kuomintang 
government  could  have  been  saved  if  liberal  elements,  not  Communists, 
were  brought  in. 

It  is  rather  a  simple  kind  of  report.  All  j^ou  need  is  to  have  some- 
body give  you  the  spelling  of  the  Chinese  names. 

Mr.  Morris.  Is  it  your  testimony  that  the  contents  of  the  Kunming 
cables  were  dictated  by  you  ? 

Mr.  Wallace.  Yes. 


1346  INSTITUTE    OF    PACIFIC    RELATIONS 

Mr.  Morris.  Who  aided  you  in  the  preparation  of  those  cables? 
Mr.  Wallace.  There  were  two  men  that  were  present,  Joe  Alsop  and 
John  Carter  Vincent. 

Mr.  Morris.  Did  Joe  Alsop  aid  you  in  the  preparation  of  those 
cables? 

Mr.  Wallace.  He  was  using  the  typewriter.  I  verified  that  from 
him. 

Mr.  Morris.  Was  he  the  amanuensis  ? 

Mr.  Wallace.  He  was  chiefly  an  amanuensis.  He  suggested  some 
changes  in  phraseology. 

Mr.  SouRwiNE.  You  were  not  dictating  to  Mr.  Alsop  for  him  to  take 
down  verbatim;  were  you? 

Mr.  Wallace.  I  would  not  say  absolutely  verbatim,  but  it  was  one 

of  those  situations  where  you  would  go  a  sentence  and  stop  and  discuss. 

As  I  testified  in  executive  session,  the  three  of  us  batted  back  and 

forth  for  quite  a  bit.     It  was  a  serious  thing,  and  we  were  determined 

to  do  everything  possible  for  the  war  effort. 

I  was  inspired  by  the  dilemma  in  which  Chiang  Kai-shek  had  found 
himself  in  his  request  that  I  intercede  with  Roosevelt. 

Afresh  from  that  impact  with  the  additional  impact  from  General 
Chennault — I  was  facing  a  war  situation  that  was  going  bad  and 
something  had  to  be  done  about  it  at  once.  It  was  the  kind  of  thing 
that  tends  to  stir  up  your  memory.  My  memory  is  not  so  very  good 
on  things  that  far  back;  so,  I  did  talk  to  Joe  Alsop  about  it  in  1950. 
I  talked  to  him  about  it  in  September  of  this  year. 

Mr.  SouRwiNE.  All  I  am  trying  to  get  is  the  distinction  between 
these  two  kinds  of  dictation  to  a  man  at  a  typewriter.  I  don't  mean 
in  either  case  to  ask  you  if  you  said  these  actual  words,  but  I  want 
to  find  out  which  of  these  two  patterns  you  followed  : 

After  this  had  been  batted  back  and  forth,  which  you  say,  "All 
right,  I  know  what  we  are  going  to  say.  Now  take  this  down,"  and 
then  you  would  dictate  a  sentence  ? 

On  the  other  hand,  would  you  say  something  like  this:  "We  are 
all  agreed  on  that.    Tell  him  so-and-so"  ? 

Mr.  Wallace.  It  would  be  more  nearly  the  latter,  I  would  say,  in 
all  probability. 

Mr.  Sourwine.  What  you  were  doing  was  deciding  as  to  substance 
rather  than  dictating  the  words  which  followed  one  another? 

Mr.  Wallace.  That  may  be  carrying  it  a  little  too  far,  but  it  is 
more  in  that  category,  I  would  say.  You  can  consult  Mr.  Alsop  with 
regard  to  that. 

I  may  say  Mr.  Lattimore,  to  the  best  of  my  knowledge,  never  knew 
this  cable  was  sent. 

Mr.  MoRRTs.  Exactly  what  role  did  John  Carter  Vincent  have  at 
this  episode? 

Mr.  Wallace.  As  I  testified  in  executive  session,  he  was  present. 
He  did  not  initiate  the  idea,  to  the  best  of  my  recollc'^tion.     The  initia- 
tion came  from  me.     He  did  engage  in  the  conversation.     He  did 
engage  in  batting  it  back  and  forth. 
Mr.  Morris.  Wliat  did  he  say  ? 

Mr.  Wallace.  I  can't  say.  There  is  no  possible  way  by  which  I 
can  remember  a  conversation  of  that  sort.    It  is  utterly  impossible. 

All  I  can  say  is  this:  Sometimes  in  a  situation  of  this  kind  it  is 
easier  to  remember,  you  might  say,  the  flash  of  an  eye  or  the  attitude 


INSTITUTE    OF   PACIFIC   RELATIONS  1347 

of  a  face  than  any  words.  I  can  say  that  I  gathered  it  from  his  attitude 
and  I  can't  remember  a  single  solitary  sentence,  a  phrase,  a  fragment 
of  a  phrase,  but  I  gathered  it  from  his  attitude. 

It  would  just  be  that  I  can  just  remember  the  flash  of  his  face  that 
this  is  the  thing  to  do.  "Let's  go,  boys."  That  is  roughly  the  feeling 
I  had  about  it. 

Mr.  Sour  WINE.  I  have  just  three  question  more. 

Is  it  the  substance  of  your  testimony  that  you  can't  point  to  any 
particular  paragraph  or  any  particular  idea  in  these  cables  and  say 
that  was  Mr.  Vincent's  idea  ? 

Mr.  Wallace.  No,  or  that  it  is  Mr.  Alsop's  idea,  or  mine.  It  would 
be  impossible  to  separate  it  out  on  that  basis. 

Mr.  SouRwiNE.  Is  it  true  you  can't  point  to  anything  in  the  cable 
and  say  Mr.  Vincent  was  against  that  ? 

Mr.  Wallace.  That  is  true. 

Mr.  SouRwiNE.  Is  it  because  he  was  against  anything,  or  is  it 
because  what  was  in  the  cable  was  something  that  met  the  joint  appro- 
val of  the  three  of  you  that  were  there? 

Mr.  Wallace.  I  would  say  it  is  something  we  talked  out  and  agreed 
to. 

Mr.  SouRwiNE.  In  other  words,  he  did  not  disagree  to  anything  in 
the  cable? 

Mr.  Wallace.  I  have  absolutely  no  recollection  of  anything  he 
disagreed  to  in  the  cable  or 

Mr.  Sour  WINE.  Yes? 

Mr.  Wallace.  I  was  going  to  say  is  there  any  other  question? 
Could  I  get  to  work  on  this  statement  ? 

Mr.  Morris.  I  have  some  questions  in  connection  with  this.  I  would 
like  to  take  the  passage  in  the  Kunming  cables  which  reads : 

But  the  attitude  of  Chiang  Kai-shek  toward  the  problem  is  so  imbued  with 
prejudice  that  I  can  see  little  prospect  for  satisfactory  long-term  settlement. 

Do  you  know  whether  John  Carter  Vincent  agreed  with  that  ex- 
pression ? 

Mr,  Wallace.  I  think  my  general  statement  is  the  only  statement 
I  can  make. 

Mr.  Morris.  We  have  to  talk  in  concrete  terms. 

Mr.  SouRwiNE.  Mr.  Wallace  has  testified  there  wasn't  anything  in 
the  cable  Mr.  Vincent  disagreed  with.    They  talked  it  out. 

If  there  was  disagreement,  they  made  adjustments.  There  wasn't 
anything  in  the  cable  Mr.  Vincent  disagreed  with;  is  that  correct? 

Mr.  Wallace.  That  is  correct. 

Senator  Smith.  Mr.  Wallace,  when  that  cable  was  sent,  did  you 
carefully  read  the  last  draft  of  the  cable,  if  there  was  more  than  one 
draft  ? 

Mr.  Wallace.  Of  course,  That  was  a  part  of  it.  This  was  continu- 
ous hard,  sweating  work. 

That  is  what  this  one  was.  It  was  to  meet  a  great  emergency.  I 
can't  emphasize  how  great  the  emergency  was  felt  at  that  time. 

Senator  Smith.  I  was  wondering  whether  or  not  you  said  to  Mr. 
Alsop,  "Here  is  what  we  agreed  upon,"  and  prepared  a  cable  and 
whether  thereafter  there  was  any  change  in  the  language  of  the  cable 
that  was  finally  sent. 

Mr.  Wallace.  This  was  something  I  was  an  intimate  part  of. 


1348  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Morris.  In  connection  with  that  sentence  which  I  read,  do  you 
testify  that  is  an  anti-Communist  statement  ? 

Mr.  Wallace.  I  think  it  might  save  time  if  we  go  from  the  executive 
session  in  which  I  say  point  after  point  this  is  factual,  then  at  the 
finish  say  this  is  definitely  anti-Communist. 

It  was  not  prepared  with  the  idea  that  it  was  anti-Communist  at  the 
time.  It  was  prepared  at  the  time  with  the  idea  of  saving  a  war 
situation. 

We  were  not  thinking  about  that.  We  can  say  definitely  today  that 
the  concluding  sentences  of  that  Kunming  cable  were  definitely  anti- 
Communist,  and  we  can  say  that  the  other  sentences  are  factual.  That 
is  what  I  so  testify. 

If  you  want  to  include  the  executive-session  hearings  at  this  point, 
I  think  it  would  save  time,  so  I  could  get  on  with  the  reading  of  my 
statement. 

Mr.  Morris.  There  were  six  points  here.  I  would  like  to  bring  them 
out.    You  can  lay  stress  on  any  one.    I  would  like  to  find  your  attitude. 

The  first  is  [reading]  : 

But  the  attitude  of  Chiang  Kai-shek  toward  the  problem  is  so  imbued  with 
prejudice  that  I  can  see  little  prospect  for  satisfactory  long-term  settlement. 

Mr.  Wallace.  The  same  answer  as  in  the  executive  hearing. 
Mr.  Morris  (reading) : 

I  emphasized  to  him  the  importance  of  reaching  an  understanding  with  Russia. 

Mr.  Wallace.  The  same  answer  as  in  the  executive  hearing. 

Mr.  Morris.  That  is  npt  significantly  anti-Communist  or  pro-Com- 
munist ? 

Mr.  Wallace.  The  same  answer  as  in  the  executive  hearing. 

The  Chairman.  What  is  it  ? 

Mr.  Wallace.  The  answer  I  gave  in  the  executive  hearing  to  all 
of  these  preliminary  sentences.  The  answer  was:  This  is  a  factual 
statement. 

Mr.  Morris.  You  don't  care  to  characterize  it  as  an  anti-Communist 
or  pro-Communist  statement  ? 

Mr.  Wallace.  I  simply  say  it  is  a  factual  statement. 

Mr.  Morris.  Without  characterizing  it? 

Mr,  Wallace.  That  is  right. 

Mr.  Morris  (reading)  : 

With  regard  to  the  economic  situation,  there  is  little  that  we  can  do,  and  the 
Chinese  appear  incapable  of  coping  with  it. 

Mr.  Wallace.  That  is  a  factual  statement. 

Mr.  Morris.  Then  you  mention  the  rising  lack  of  confidence  in  the 
Generalissimo  and  the  present  reactionary  leadership  of  the  KuOmin- 
tang. 

Mr.  Wallace.  That  is  a  factual  statement. 

Mr.  Morris  (reading)  : 

The  foregoing  picture  has  been  drawn  on  the  basis  of  the  best  available  infor- 
mation to  show  you  how  serious  the  situation  is. 

Mr.  Wallace.  Factual. 
Mr.  Morris  (reading)  : 

It  should  be  possible  to  induce  Chiang  to  establish  at  least  a  semblance  of  a 
united  front  necessary  to  the  restoration  of  Chinese  morale  and  to  proceed 
thereafter  to  organize  a  new  offensive  effort. 


INSTITUTE    OF   PACIFIC   RELATIONS  1349 

Mr.  Wallace.  A  factual  statement. 

That  had  reference,  of  course,  to  the  military.  I  was  not  there 
to  have  anything  to  do  with  establishing  a  coalition  government  be- 
tween the  Kuomintang  and  the  Communists. 

Mr.  Morris.  You  wanted  a  coalition  of  military  forces? 

Mr.  Wallace.  It  was  a  question  of  interchange  of  military  in- 
formation and  a  united  effort  against  the  Japanese;  this  is  all  fac- 
tual stuff.  It  does  not  have  anything  to  do  with  anti-Communist  or 
pro-Communist.    It  is  simply  factual. 

Mr.  SouRWiNE.  That  statement  by  itself  on  its  face  could  not  have 
been  factual.     It  is  an  expression  of  opinion;  is  it  not? 

Mr.  Wallace.  What  does  it  say  ? 

Mr.  SouEWiNE.  You  said  "it  should." 

Mr.  Morris  (reading) : 

It  should  be  possible  to  induce  Chiang  to  establish  at  least  a  semblance  of  a 
united  front  necessary  to  the  resoration  of  Chinese  morale  and  to  proceed 
thereafter  to  organize  a  new  offensive  effort. 

Mr.  Wallace.  I  would  call  it  a  factual  statement.  If  you  want 
to  call  it  opinion,  all  right.    It  looks  like  a  factual  statement. 

Mr.  SouRwiNE.  It  was  the  view  you  held  on  the  basis  of  the  factors 
you  were  familiar  with? 

Mr.  Wallace.  Yes. 

I  thought  it  was  possible. 

Mr.  Morris.  Next  here  it  says : 

As  I  took  leave  of  Chiang  he — 

• 

Chiang  Kai-shek — 

requested  me  to  ask  you  to  appoint  a  personal  representative  to  serve  as  liaison 
between  you  and  him. 

Then  you  go  on  to  recommend. 

Mr.  Wallace.  To  Chungking.    Did  you  read  it  correctly.    I  took 
leave  of  what  ? 
Mr.  Morris  (reading) : 

As  I  took  leave  of  Chiang,  he  requested  me  to  ask  you  to  appoint  a  personal 
representative  to  serve  as  liaison  between  you  and  him.  Carton  DeWiart 
occupies  somewhat  the  same  position  between  Churchill  and  Chiang.  In  my 
opinion  a  move  of  this  kind  is  strongly  indicated  by  the  politico-military 
situation. 

An  American  general  officer  of  the  highest  caliber,  in  whom  political  and 
military  authority  will  be  at  least  temporarily  united,  is  needed.  It  appears  that 
operations  in  Burma  make  it  impossible  for  General  Stilwell  to  maintain  close 
contact  with  Chiang.  Furthermore,  Chiang  informed  me  that  Stilwell  does  not 
enjoy  his  confidence  because  of  his  alleged  inability  to  grasp  over-all  political 
consideration.  I  do  not  think  any  officer  in  China  is  qualified  to  undertake  the 
assignment.  Chennault  enjoys  the  Generalissimo's  full  confidence,  but  he  should 
not  be  removed  from  his  present  military  position. 

The  assignment  should  go  to  a  man  who  can  (1)  establish  himself  in  Chiang's 
confidence  to  a  degree  that  the  latter  will  accept  his  advice  in  regard  to  political 
as  well  as  military  actions;  (2)  command  all  American  forces  in  China,  and  (3) 
bring  about  a  full  coordination  between  Chinese  and  American  military  efforts. 
It  is  essential  that  he  command  American  forces  in  China  because,  without  this, 
his  efforts  will  have  no  substance.  He  may  even  be  Stilwell's  deputy  in  China 
with  a  ri.2:ht  to  deal  directly  with  the  White  House  on  political  questions,  or  China 
may  be  separated  from  General  Stilwell's  present  command. 

Without  the  appointment  of  such  a  representative  you  may  expect  the  situation 
here  to  drift  continuously  from  had  to  worse. 

I  believe  a  representative  should  be  appointed  and  reach  Chungking  before  east 
China  is  finally  lost  so  that  he  can  assume  control  of  the  situation  before  it 
degenerates  too  far. 


1350  INSTITUTE    OF   PACIFIC    RELATIONS 

While  I  do  not  feel  competent  to  propose  any  officer  for  the  job,  the  name  of 
General  Wedemeyer  has  been  recommended  to  me  and  I  am  told  that  during 
his  visit  here  he  made  himself  persona  grata  to  Chiang. 

Do  you  contend  that  is  an  anti-Communist  recommendation  ? 

Mr.  Wallace.  Yes. 

Mr.  Morris.  Of  all  the  statements  here  that  is  the  one  you  contend 
is  anti-Communist  ? 

Mr.  Wallace.  I  contend  so  far  as  action  was  concerned,  the  whole 
effect  of  the  cable  was  definitely  and  conclusively  anti-Communist 
because  it  suggested  the  replacement  of  Stilwell. 

Mr.  Morris.  That  is  not  necessarily  a  replacement.  The  man  you 
proposed  could  be  a  subordinate,  you  say. 

Mr.  Wallace.  But  with  complete  liberty  with  regard  to  political 
action  in  China  which  is  the  key  to  the  whole  situation. 

Mr.  Morris.  Did  you  contend  that  is  an  anti-Communist  act  ? 

Mr.  Wallace.  I  do  most  profoundly  so  contend. 

Mr.  Morris.  Do  you  know  whether  or  not  the  Communist  Party 
through  its  official  publications  protested  the  removal  of  Stilwell  ? 

Mr.  Wallace.  I  am  not  an  expert  on  the  Communist  Party.  I  do 
not  read  their  publications  and  don't  know  what  they  are  up  to. 

Mr.  Morris.  Have  you  not  set  yourself  forth  as  an  expert  here  when 
you  said  John  Carter  Vincent  did  not  object  to  this  so  he  couldn't 
have  been  a  Communist  ?  Do  you  not  by  that  very  fact  set  yourself 
up  as  an  expert  ? 

Mr.  Wallace.  No.  Let  us  put  it  this  way:  Mr.  Budenz  has 
testified 

Mr.  Ball.  May  I  interrupt  for  a  moment?  It  seems  to  me  that 
question  is  directed  to  things  which  are  in  Mr.  Wallace's  statement 
which  is  not  yet  in  the  record. 

Senator  Smith.  We  are  asking  about  it.  We  are  not  going  to  pre- 
clude him  from  putting  in  the  statement. 

Mr.  Ball.  The  form  of  Mr.  Morris'  question  indicated  that  Mr. 
Wallace  has  testified  to  things  which  he  has  not  testified  to,  because 
they  have  not  been  put  in  the  record. 

Senator  Smith.  It  is  the  committee's  privilege  to  ask  questions. 
We  are  not  precluding  Mr.  Wallace  from  giving  answers. 

Mr.  Wallace.  This  will  be  a  repetition  of  what  I  have  in  my  state- 
ment, if  you  don't  object. 

Senator  Smith.  It  may  be.  I  think  the  committee  should  have 
the  right  to  ask  you  in  what  form  they  wish  the  questions  to  be 
answered. 

Mr.  Wallace.  There  have  been  witnesses  before  the  committee  who 
have  testified  with  regard  to  what  the  Communist  attitude  was  at  that 
time.  When  I  said  I  was  not  an  expert  on  Communist  attitude  in 
1944,  I  was  speaking  advisedly.  I  am  not  an  expert  on  Communist 
attitude  in  1944;  have  never  claimed  to  be  an  expert  on  Communist 
attitude  at  any  time.  I  just  don't  know  because  it  is  such  a  wavering 
kind  of  line. 

The  only  word  I  can  take  as  to  what  Communist  attitude  in  1944 
was  is  testimony  by  Mr.  Budenz  who  indicates  that  the  Communist 
attitude  in  1944  was  to  tear  down  Chiang  Kai-shek.  That  is  his 
testimony. 


INSTITUTE    OF   PACIFIC    RELATIONS  1351 

I  Scay  that  what  I  recommended  in  terms  of  action,  and  this  was 
the  only  thing  effective  in  terms  of  action  and  the  only  way  in  which 
there  could  be  expression,  was  through  Roosevelt  in  terms  of  action. 

The  only  thing  I  recommended  in  terms  of  action  to  Roosevelt  was 
an  action  which  built  up  Chiang  Kai-shek  and  went  against,  judging 
from  the  testimony  of  Budenz,  what  was  the  Communist  line  at  that 
time. 

Again,  I  say  I  am  in  no  sense  an  expert  on  the  Communist  line. 

Mr.  Morris.  You  do  not  know,  then,  what  the  Communist  attitude 
was  with  respect  to  the  items  we  read  in  the  Kunming  cables  ? 

Mr.  Wallace.  I  was  sent  specifically,  specifically  instructed  by 
Roosevelt  not  to  get  in  touch  with  Communists.  1  was  sent  on  a 
misison  to  Chiang  Kai-shek;  not  to  the  Communists. 

So  I  don't  know  what  the  Communists  stood  for,  whether  they  were 
Chinese  or  Russian  or  American,  in  1944. 

Mr.  Morris.  Therefore,  you  must  testify  that  you  do  not  know 
whether  or  not  the  recommendation  set  forth  in  the  Kunming  cables 
was  or  was  not  consistent  with  Communist  policy  ? 

Mr.  Wallace.  I  have  to  take,  except  insofar  as  Mr.  Budenz  so 
testified — I  am  accepting  him  as  the  expert.  It  may  be  later  on  we 
will  discover  that  the  Communists  were  strong  for  building  up  Chiang 
Kai-shek.     It  is  quite  possible  you  will  discover  that  later. 

You  can't  tell  about  the  turnings  of  the  Communist  line. 

Mr.  Morris.  If  you  are  accepting  him  as  the  expert,  he  has  testified 
this  Kunming  cable  is  not  an  anti-Communist  document. 

Mr.  Wallace.  I  am  accepting  him  as  an  expert  in  his  field  of 
competence,  and  not  in  his  field  of  incompetence. 

Mr.  Morris.  I  don't  understand  the  distinction. 

Mr.  Wallace.  He  was  trained  for  many  long  years  in  teaching  the 
authoritarian  dictatorship  of  the  Communist  Party,  and  ought  to 
know  the  Communist  Party,  and  that  when  he  spoke  there  he  spoke 
as  an  authority  and  when  he  spoke  on  my  Kunming  cable,  he  spoke  as 
a  man  completely  without  knowledge  and  authority. 

Mr.  Morris.  He  was  the  editor  of  the  publication  setting  forth  the 
Communist  view  on  it  at  the  time  ? 

Mr.  Wallace.  I  am  accepting  his  testimony  as  to  what  he  said  the 
Communists  wanted  with  regard  to  Chiang  Kai-shek.  I  will  proceed 
to  show  in  my  statement  that  Mr.  Budenz  was  in  error,  very  definitely, 
when  he  said  things  in  regard  to  my  cable.  I  will  say  he  was  imposing 
on  the  high  dignity  of  this  committee  when  he  testified  as  he  did. 

Mr.  Morris.  Testified  to  what  ? 

Mr.  Wallace.  When  he  testified  to  the  effect  that  my  cable  was 
not  anti-Communist  in  its  effect.  Could  I  be  allowed  finally  to  read 
my  statement? 

Senator  Smith.  Right  in  that  connection  there  are  two  or  three  ques- 
tions that  I  would  like  to  ask  you.    I  think  you  can  answer  very  quickly. 

In  connection  with  Mr.  Budenz'  testimony,  I  assume  you  are  in 
sympathy  with  the  over-all  objective  of  this  committee's  activities  in 
tracking  down  Communists  in  the  Government  if  there  are  any? 

Mr.  Wallace.  Of  course.  I  agree  completely  that  the  world  situa- 
tion as  it  is,  it  is  a  very  important  function  indeed. 


1352  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Smith.  Do  you  think  that  is  a  field  within  which  the  com- 
mittee ought  to  operate  to  secure  such  evidence  as  it  can  ? 

Mr.  Wallace.  Of  course. 

Senator  Smith.  Do  you  feel  now  from  published  reports  and  in- 
formation you  have  there  are  any  Communists  or  Communist  sympa- 
thizers in  America?    Is  there  any  doubt  in  your  mind  about  that? 

Mr.  Wallace.  They  seem  to  have  gotten  into  various  places.  They 
even  got  into  the  Manhattan  project,  if  you  may  remember.  They  have 
a  capacity  to  get  around  that  is  altogether  astounding  and  which  has 
been  well  demonstrated  it  seems  to  me  by  documented  evidence. 

Senator  Smith.  I  am  asking  these  questions  manifestly  for  the  pur- 
pose of  establishing  the  good  faith  of  your  mind  and  what  you  feel 
in  regard  to  this  committee's  activities. 

You  feel  that  these  Communists,  as  such,  as  you  have  just  mentioned 
should  be  tracked  down,  if  possible  ? 

Mr.  Wallace.  Certainly.  If  there  is  real  trouble  going  to  break  out, 
there  is  no  question  as  to  where  their  allegiance  will  lie. 

Senator  Smith.  There  is  no  question  that  this  committee,  if  it  can 
be  of  assistance,  should  attempt  to  keep  that  sort  of  people  out  of 
government  ? 

Mr.  Wallace.  Yes.    I  agree. 

Senator  Smith.  When  we  call  people  as  witnesses  either  by  subpena 
or  voluntarily  on  their  part,  you  feel  we  should  hear  whatever  a  wit- 
ness is  testifying  to  under  oath  ? 

Mr.  Wallace.  I  hope  so. 

Senator  Smith.  In  that  connection,  if  a  witness  should  come  here 
and  testify  under  oath  and  it  later  turned  out  he  did  not  tell  the  truth, 
you  do  not  think  that  should  be  any  reflection  upon  this  committee  or 
its  members  ? 

Mr.  Wallace.  No;  I  don't.  I  just  feel  that  the  committee  has  per- 
haps been  imposed  on. 

Senator  Smith.  That  goes  back  to  the  efforts  that  the  committee 
has  made  to  take  testimony  in  executive  session  to  test  witnesses  be- 
fore the  open  session  and  to  protect  a  person  who  might  be  innocent. 
You  agree  on  that  ? 

Mr.  Wallace.  I  do,  sir. 

Senator  Smith.  You,  of  course,  realize  always  that  the  committee 
cannot  hear  but  one  person  at  a  time,  and  it  takes  a  good  deal  of  time 
on  each  person  ? 

Mr.  Wallace.  Yes. 

Senator  Smith.  Do  you  have  any  personal  complaint  against  the 
committee  either  for  its  subpenaing  you  or  for  its  failure  to  hear  you? 

Mr.  Wallace.  As  a  matter  of  fact,  I  wrote  Senator  Ferguson  some- 
time in  early  September.  I  had  quite  a  little  correspondence  with  him 
in  which  I  indicated  if  there  was  any  way  in  which  I  could  be  of 
service  to  him  personally  or  through  the  committee,  I  would  be  glad 
to  do  so.  I  was  a  little  bit  surprised  to  receive  a  subpena  on  my  farm 
directing  me  to  be  at  Foley  Square  on  18  hours'  notice.  That  is  the 
only  point  at  which  I  felt  that  I  was  a  little  bit  up  against  the  gun, 
because  I  had  a  personal  situation  that  was  very  difficult  to  meet. 

At  that  time  I  may  say  I  was  assured  that  it  would  only  take  a  half 
or  three-quarters  of  an  hour  to  take  my  testimony. 

Senator  Smith.  You  were  talking  to  an  optimist. 


INSTITUTE    OF   PACIFIC    RELATIONS  1353 

Mr.  Wallace.  Then  a  little  later  I  talked  to  Mr.  Sourwine,  and  he 
was  utterly  cordial.  This  was  about  midnight.  At  that  time  there 
were  only  8  hours  separating  me  from  the  necessity  of  catching 
a  train,  and  those  were  hours  of  sleep. 

Mr.  Sourwine  was  so  cordial  and  so  completely  agreeable  that  I 
should  have  the  necessary  time  to  get  counsel  that  I  have  no  complaint 
against  the  committee  at  all,  although  I  had  some  uneasy  moments 
the  evening  of  October  3  when  I  was  trying  to  arrange  my  affairs  to 
see  whether  or  not  I  could  get  down  to  New  York  City  the  following 
morning  at  11  o'clock. 

Senator  Smith.  I  did,  too,  but  I  was  scheduled  to  hold  that  hearing 
and  could  not  go. 

Mr.  Wallace.  So  I  frankly  have  no  complaint  against  the  commit- 
tee except  this  one,  and  that  was  a  passing  minor  irritation. 

Senator  O'Conor.  It  does  seem  to  me  Mr.  Wallace  has  several  times 
emphasized  that  there  should  be  given  an  opportunity  to  him  to  put  a 
statement  in.     I  think  that  should  be  granted. 

Senator  Smith.  We  have  told  him  that  this  morning. 

Senator  O'Conor.  I  think  he  should  if  there  has  been  extensive 
interrogation.    He  should  read  the  statement. 

Senator  Smith.  We  assured  him  this  morning  that  would  be  done. 

Senator  O'Conor.  I  did  understand  him  to  say  he  did  want  to  get 
along  with  it  now. 

Senator  Smith.  The  question  was  whether  or  not  the  plan  of  exami- 
nation was  going  to  be  followed  first,  because  he  had  a  certain  line 
prepared.    Then  Mr.  Wallace  would  have  a  chance  to  put  this  in. 

Then  the  committee  would  wish  to  properly  call  Mr.  Wallace  back, 
or  give  him  a  chance  to  come  back  on  anything. 

Mr.  Wallace.  It  would  save  expense  if  we  can  complete  it  now. 

Mr.  Morris.  We  have  laile  6  of  the  Senate  Committee  on  the  Judici- 
ary which  reads: 

The  committee  shall,  as  far  as  practicable,  require  all  witnesses  appearing 
before  it  to  file  in  advance  written  statements  of  their  proposed  testimony  at 
least  24  hours  before  iiearing  and  to  limit  their  oral  presentation  to  brief  sum- 
maries of  their  argaiment. 

I  would  just  like  to  call  attention  of  the  chairman  to  that  rule. 

Senator  Smith.  Is  that  rule  applicable  to  witnesses  that  the  com- 
mittee subpenas  or  to  witnesses  that  offer  to  come  here? 

Mr.  Morris.  Mr.  Sourwine. 

Mr.  Sourwine.  The  rule  is  intended  to  be  applicable  to  voluntary 
statements.  The  witness  subpenaecl  is  here  to  answer  questions  and 
does  not  have  a  vohuitary  statement. 

Senator  Smith.  Is  that  not  the  reason  we  waived  the  rule  as  to 
this  statement,  so  that  it  could  be  put  in  today  rather  than  at  a  later 
hearing  ? 

Mr.  Soura\t:ne.  That  rule  of  the  committee  as  the  chairman  knows, 
stems  from  the  requirement  of  the  Legislative  Reorganization  Act 
in  section  133  (e)  that  each  standing  committee  shall,  as  far  as  prac- 
ticable, require  all  witnesses  appearing  before  it  to  file  in  advance 
written  statements  of  their  proposed  testimony  and  to  limit  their 
oral  presentation  to  brief  summaries  of  their  argument. 

The  committee  fixed  24  hours  under  a  sort  of  de  minimis  rule  that 
anything  less  would  not  be  the  filing  in  advance  that  was  contemplated 
by  the  statute. 


]^354  INSTITUTE    OF   PACIFIC   RELATIONS 

The  rule  has  been  waived  by  the  committee.    It  is  a  question  of 

what  is  desired. 

Senator  Smith.  I  thought  it  should  be  because  we  subpenaed  him 
to  come  here.  Therefore,  he  was  not  coming,  while  no  doubt  he  would 
have  of  his  own  volition.  The  statement  which  he  has,  while  not 
meeting  that  rule,  it  seems  to  me  we  were  acting  quite  properly  in 
waiving  any  rule  about  24  hours  so  he  could  offer  this  statement. 

Senator  O'Conor.  I  do  not  think  the  committee  wants  to  be  in  the 
position  of  precluding  or  in  any  sense  of  stopping  the  witness  from 
presenting  it.  I  think  he  has  answered  very  fully.  I  think  he  should 
be  given  opportunity  to  proceed. 

Mr.  SouRWiNE.  If  I  may  make  a  further  statement  since  this  state- 
ment is  in  the  form  of  a  press  release,  and  I  presume  will  be  released 
through  the  press,  or  has  been,  perhaps  he  should  not  be  interrupted 
for  questioning. 

If  you  desire  to  have  it  read  instead  of  placing  it  in  the  record, 
that  is.  If  we  did  it,  it  would  spoil  the  continuity  of  it.  The  state- 
ment would  not  represent  precisely  what  he  testified  to. 

If  he  wants  the  statement  to  represent  what  he  testifies  to,  the 
committee  should  let  him  read  it  without  interruption. 

Mr.  Morris.  May  I,  for  the  record,  point  out  the  unfairness  of  the 
failure  on  the  part  of  witnesses  to  comply  with  this  rule.  As  counsel 
and  Mr.  Mandel  as  research  director,  we  have  the  obligation  of  ex- 
tracting or  refuting  some  of  the  statements  there. 

I  have  not  read  the  statement.  I  would  like  to  be  in  a  position 
to  answer  if  any  follow-up  questions  are  asked  or  to  introduce  any 
refutation  of  the  facts  that  Mr.  Wallace  has  gratuitously  set  forth. 

Mr.  Wallace.  I  might  say,  Mr.  Counsel,  that  this  follows  much  the 
line  of  the  statement  that  I  released  the  other  day,  but  it  brings  in 
also  reference  to  Mr.  Budenz. 

Mr.  SouRwiisTE.  Since  that  statement  has  been  mentioned,  if  the 
chairman  will  indulge  me  for  just  a  moment,  I  would  like  to  combine 
a  statement  and  a  few  questions  to  you. 

There  has  been  a  great  deal  of  criticism  of  this  committee  in  the 
press  and  otherwise  for  failing  to  permit  the  previous  statement  to 
go  in  the  record.  I  think  in  fairness  to  the  committee  there  should 
be  an  understanding  of  what  the  situation  was.  If  I  misstate  anything, 
I  ask  you  to  please  call  my  attention  to  it. 

When  we  approached  the  noon  hour,  or  the  hour  of  recess,  you 
called  attention  of  the  committee  to  the  fact  that  you  had  a  state- 
ment and  you  would  like  to  put  it  in  the  record.    Is  that  correct  ? 

Mr.  Wallace.  Yes. 

Mr.  SouRwiNE.  It  was  stated  by  you  or  your  counsel  that  the  state- 
ment had  already  been  given  to  the  press  for  release  at  the  conclusion 
of  the  hearing? 

Mr.  Wallace.  That  is  correct. 

Mr.  Sourwine.  It  was  at  that  point  that  a  number  of  the  members 
of  the  committee  who  were  familiar  with  the  history  of  your  request 
that  the  session  be  made  public  instead  of  executive,  and  the  chair- 
man's telegram  to  you  denying  that  and  saying  that  it  was  to  be 
executive — it  was  a  number  of  the  members  of  the  committee  who 
were  familiar  with  that  history  who  then  expressed  the  view  that 
since  you  had  come  there  with  a  statement  which  had  already  been 
sent  on  its  way  to  the  press  to  be  released  as  what  took  place  in  execu- 


INSTITUTE    OF   PACIFIC   RELATIONS  1355 

tive  session  that  the  statement  should  not  then  and  there  be  permitted 
to  be  put  in. 

Is  that  a  fair  statement  ? 

Mr.  Wallace.  Yes. 

Subsequent  to  that  it  was  found  it  actually  had  not  gotten  out  to 
the  press,  and  I  met  with  counsel  after  the  meeting, 

Mr.  SouRwiNE.  You  advised  the  committee  of  that  fact  at  the  end  ? 

Mr.  Wallace.  Yes. 

Mr.  Ball.  I  advised  the  committee  because  I  called  my  office  to 
make  sure  that  it  had  been  delivered  or  to  ascertain  definitely  whether 
or  not  it  had  been  delivered  to  the  Senate  Press  Gallery. 

Mr.  SouRwiNE.  Was  it  your  understanding,  in  connection  with  hav- 
ing advised  the  committee  it  had  not  been  delivered,  that  you  intended 
to  convey  the  idea  to  the  committee  you  had  stopped  it  and  would 
not  release  it? 

Mr.  Ball.  No.  I  have  conveyed,  and  we  have  looked  at  the  record 
because  I  was  very  much  surprised  afterward  there  was  some  indica- 
tion that  the  committee  felt  I  had  made  a  promise  on  Mr.  Wallace's 
behalf  in  that  regard. 

I  don't  have  the  exact  words  of  what  I  said  here — yes ;  here  they 
are: 

For  the  committee's  information— and  I  have  not  had  an  opportunity  to  tell 
Mr.  Wallace — I  checked  with  my  office.  I  found  they  were  on  the  way  with  the 
statement  up  here.  I  have  recalled  them,  and  the  statement  has  not  been 
released  to  the  press. 

I  certainly  did  not  intend  by  that  to  give  any  assurance  to  the  com- 
mittee that  the  statement  would  not  be  released  to  the  press  after  I 
had  an  opportunity  to  consult. 

Mr.  SouRwiNE.  At  that  time  at  the  tail  end  of  the  hearing  and  up 
to  that  time,  the  committee  had  no  reason  to  think  but  that  if  this  state- 
ment went  into  the  record  would  subsequently  be  released  as  Mr.  Wal- 
lace's statement  to  the  committee  in  executive  session ;  is  that  correct  ? 

Mr.  Ball.  Yes. 

Mr.  Wallace.  Counsel  and  I  met,  Mr.  Ball  and  I,  for  some  time 
that  afternoon  to  decide  whether  or  not  to  then  release  it  to  the  press. 
This  was  along  about  4  o'clock.  At  that  time  we  had  no  assurance 
there  would  be  an  open  hearing;  and,  because  of  the  feeling  there 
might  not  be  an  open  hearing  and  because  certain  things  had  been  said 
about  me  along  the  line  you  mentioned  in  opening  up  the  hearing,  I 
felt  my  only  chance,  knowing  the  way  the  press  works  when  filings 
are  hot,  to  get  certain  information  into  the  press  was  to  make  the  re- 
lease then. 

Mr.  SouRWiNE.  I  did  not  intend  to  say  anything  that  might  sound 
critical  of  your  issuing  the  release.     That  is  not  my  province. 

Mr.  Wallace.  I  don't  want  our  action  to  impugn  the  good  faith  of 
the  committee. 

Mr.  SouRwiNE.  I  was  attempting  to  justify  the  committee  action, 
at  least  to  explain  on  the  record  the  committee's  refusal  to  permit  the 
previous  statement  to  go  into  its  executive  record. 

That  is  the  whole  purpose. 

Mr.  Wallace.  It  seems  to  me  we  are  in  accord  as  to  the  facts. 

Mr.  Morris.  Did  you  not  promise  at  the  termination  of  the  last 
hearing  that  you  would  not  release  this  statement  after  the  hearing? 

Mr.  Wallace.  No.     I  don't  have  any  recollection. 


1356  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Ball.  I  have  no  recollection  of  any  such  promise.  In  fact,  I 
have  very  definitely  in  my  mind  not  making  such  a  promise  until  I 
had  an  opportunity  to  consult. 

Senator  Smith.  The  record  will  show  what  was  said. 

Mr.  Morris.  No.  This  statement  I  refer  to  was  made  after  the  ter- 
mination of  the  record. 

Mr.  Wallace.  It  had  to  do  with  what  we  would  say  to  the  news- 
papermen at  the  door. 

Mr.  Morris.  That  no  statements  would  be  made. 

Mr.  Wallace.  I  asked  you  to  accompany  me.  I  told  them  that  I 
could  not  say  whether  or  not  there  would  Jbe  a  subsequent  statement. 
The  newspapermen  can  probably  deny  or  confirm  this. 

Senator  Smith.  It  did  not  seem  to  me  that  the  release  of  it  was  any- 
thing of  great  moment,  because  Mr.  Wallace  had  a  right  to  say  what 
he  wished  to  the  press. 

I  realize  Mr.  Wallace  never  had  it  occur  to  him  that  he  was  going  to 
be  in  executive  session. 

Mr.  Wallace.  I  was  not  fully  aware  of  the  very  serious  way  in 
which  you  are  approaching  the  whole  technique.  I  knew  in  a  general 
way  about  it,  but  I  had  not  been  fully  cognizant  of  your  method  of 
approach. 

Air.  SouRWiNE.  For  the  record,  I  believe  I  should  state  that  the 
executive  record  shows  that  I  stated  then  what  had  taken  place  pre- 
viously, to  wit,  that  Mr.  W^Hf^ce's  attorney  had  inquired  of  me  with 
respect  to  this  matter  and  had  been  told  in  response  to  his  inquiry  that 
the  committee  hoped  and  expected  that  its  witnesses  vvould  respect 
the  executive  character  of  the  hearings,  but  that  there  was,  of  course, 
no  way  in  which  the  committee  could  compel  that  kind  of  action. 

Mr.  Wallace's  attorney,  so  the  record  shows,  indicated  that  was  a 
con-ect  statement  and  he  accepted  it  as  made. 

Mr.  Wallace.  We  changed  the  top  heading.  I  felt  I  was  quite 
justified  in  putting  it  out  that  afternoon  because  it  then  appeared  very 
clearly  this  had  not  been  presented  before  the  committee. 

You  have  the  exact  headirg  there.  I  felt  the  heading  took  care  of 
the  proprieties  of  the  situation. 

Mr.  S:)URwiNE.  You  made  it  very  clear  it  was  a  statement  which  had 
been  offered  to  the  committee  and  the  receipt  of  which  had  been  re- 
fused, and  perhaps  in  a  short  paragraph  you  did  not  have  space  to 
explain  why. 

Mr.  Wallace.  Now  could  I  get  on  with  this? 

Senator  Smith.  It  is  now  1 :  25.  What  is  the  pleasure  of  the  com- 
mittee? 

Senator  O'Conor.  It  may  be  he  thinks  it  should  go  in  at  this  junc- 
ture for  possible  press  release  or  other  purposes.  I  would  think  there 
ought  to  be  opportunity  given  to  the  witness  to  put  it  in  now. 

Mr.  Wallace.  JNIaybe  you  could  hear  me  in  relays  so  that  you  can 
get  lunch. 

Mr.  SouRwiNE.  Have  copies  been  given  to  the  press? 

Mr.  Ball.  Yes. 

Senator  O'Conor.  Would  it  be  in  order  to  consider  it  having  been 
introduced  in  full  so  it  may  be  possible  to  release  it? 

Senator  Smith.  You  may  wish  to  read  it  and  interpolate. 

It  ought  to  be  read  so  that  the  committee's  counsel,  who  has  not  had 
a  chance  to  read  it,  so  he  can  make  such  notes  as  he  goes  along,  but 


INSTITUTE    OF   PACIFIC   RELATIONS  1357 

with  the  understanding  the  committee's  counsel  may  have  the  right 
to  examine  this  and  ask  further  questions.  He  has  not  had  a  chance 
to  see  it. 

Mr.  Wallace.  Maybe  counsel  could  spell  each  other. 

Senator  Smith.  The  point  is  whether  or  not  there  was  something 
in  here  that  they  would  have  to  do  a  little  research  on  before  they 
could  ask  you  what  they  deem  would  be  proper  questions. 

Mr,  SouRwiNE.  We  could  better  do  research  during  a  recess  than 
while  sitting  here. 

Senator  O'Conor.  That  is  the  reason  I  suggested  if  the  whole  state- 
ment were  put  in  in  toto  and  then  take  a  recess,  then  counsel  could 
interrogate. 

Mr,  Wallace.  Could  we  get  back  fairly  early  ? 

Senator  Smith.  We  will  recess  until  2 :  15, 

(Thereupon,  at  1:30  p.  m.,  the  hearing  recessed,  to  reconvene  at 
2 :  15  p.  m.  same  day.) 

AFTERNOON'   SESSION 

Senator  Smith.  The  hearing  will  come  to  order. 

Mr.  Wallace,  you  may  proceed  now  with  your  recital  of  the  state- 
ment. 

Mr,  Wallace,  On  several  occasions  in  the  past  few  months  this 
committee  has  heard  testimony  in  public  session  from  a  man  named 
Louis  Budenz,  who  was,  I  understand,  a  leading  American  Commu- 
nist, On  August  23,  1951,  Budenz  testified  that  a  mission  to  China 
which  I  undertook  in  1944  at  President  Roosevelt's  request  was  "fol- 
lowed by  the  Communists  with  a  great  deal  of  interest  in  discussions 
in  the  Politburo." 

According  to  Budenz'  testimony  it  was  pointed  out  in  these  Polit- 
buro discussions  that  I  "was  more  or  less  under  good  influences  from 
the  Communist  viewpoint"  because  I  was  accompanied  on  that  mis- 
sion by  Mr.  Owen  Lattimore  and  Mr.  John  Carter  Vincent,  "both  of 
whom  were  described  as  being  in  line  with  the  Communist  viewpoint, 
seeing  eye  to  eye  with  it,.and  that  they  would  guide  [me]  largely  along 
those  paths," 

Subsequent  to  this  testimony  I  wrote  to  President  Truman  enclos- 
ing the  two  reports  that  I  had  made  to  President  Roosevelt  with 
regard  to  my  mission.  After  the  Wliite  House  had  released  those  two 
reports,  Budenz  discussed  them  before  this  committee  on  October  5, 
1951. 

In  the  course  of  his  testimony  Budenz  characterized  those  reports 
in  various  ways,  but  all  with  the  same  implication.  They  were,  he 
said,  "in  accord  with  the  Communist  policies  at  that  time."  Again  he 
said,  "these  messages,  in  the  light  of  the  ]:)eriod,  were  what  the  Com- 
munists wanted  presented."  The  "document,"  according  to  Budenz, 
"gives  aid  to  the  Communists  in  the  policies  they  were  forwarding  at 
that  time." 

Since  these  remarks  are  coupled  with  the  statement  that  "the  Polit- 
buro was  very  pleased  with  the  fact  that  Lattimore  and  Vincent  were 
present,"  inuenclo  is  clear  that  I  was  somehow  influenced  by 
one  or  both  of  those  gentlemen  to  follow  the  Communist  line,  I  sboll 
discuss  these  and  other  charges  fully  in  the  course  of  my  statemprt. 

I  am  grateful  to  this  committee  for  permitting  me  to  appear  this 
afternoon  in  public  session  in  order  to  state  the  true  facts  concerning 


1358  INSTITUTE    OF   PACIFIC   RELATIONS 

my  mission  to  China.  From  these  facts  it  will  be  apparent  to  anyone 
that,  far  from  following  a  line  favorable  to  the  Communists,  my  miS' 
sion  resulted  in  recommendations  to  the  President  which,  if  promptly 
followed,  would  have  been  most  harmful  to  the  Communist  cause  in 
China  in  1944  as  defined  by  Budenz.  From  these  facts  it  will  be 
apparent  that  the  accusations  which  Budenz  has  made  about  my 
mission  constitute  a  grave  slander. 

This  committee  is  quite  rightly  concerned  about  the  loss  of  influence 
which  the  United  States  has  suffered  in  the  Far  East,  and  about  the 
peril  to  our  security  in  that  part  of  the  world  from  a  Communist- 
dominated  China  under  the  direct  influence  of  Russia.  I  am  testifying 
before  you  this  morning  as  a  man  who  in  another  time  of  great  peril 
presided  over  the  most  powerful  body  in  the  world,  the  United  States 
Senate.  It  was  during  my  tenure  as  Vice  President  and  President  of 
the  Senate  that  war  was  declared  against  the  Fascist  powers  and  that 
the  United  States  put  forth  the  most  magnificent  war  effort  that  any 
nation  ever  demonstrated.    I  had  an  intimate  part  in  that  effort. 

As  Secretary  of  Agriculture  I  proposed  the  legislation  that  made  it 
possible  to  build  up  enormous  supplies  of  food  and  cotton  in  the  ever- 
normal  granary. 

As  Secretary  of  Agriculture  I  initiated  the  trade  of  a  part  of  our 
cotton  for  a  large  amount  of  rubber  in  1939. 

As  Vice  President  I  was  asked  by  President  Roosevelt  to  use  the 
prestige  of  my  high  office  to  straighten  out  tangles  in  our  production 
effort  during  the  period  just  prior  to  our  entry  into  the  war. 

I  became  Chairman  of  the  Supplies,  Priorities,  and  Allocations 
Board  during  the  critical  period  when  we  were  converting  our  auto- 
mobile facilities  to  the  all-out  production  of  tanks  and  airplanes. 

In  1941  President  Roosevelt  asked  me  to  head  what  later  became  the 
Board  of  Economic  Warfare.  This  Board  had  a  large  part  to  play  in 
the  control  of  exports,  the  stimulation  of  imports  needed  in  the  war 
effort,  and  the  selection  of  the  most  vital  bombing  targets  in  enemy 
lands. 

In  1943  I  was  asked  by  the  President  to  make  a  good-will  trip  to 
Latin  America  to  stimulate  the  maximum  production  of  strategic 
materials  which  we  needed. 

I  cite  tliis  record  not  from  vanity — although  I  am  proud  of  the 
part  which  I  was  able  to  play  in  the  war — but  to  show  the  background 
for  the  mission  to  China  which  I  undertook  in  the  spring  of  1944. 

President  Roosevelt  suggested  that  mission.  The  President  had 
long  been  concerned  over  the  militaiy  situation  in  China,  and  we  had 
watched  it  progressively  deteriorate.  In  the  spring  of  1944  it  was 
especially  necessary  that  nothing  happen  which  would  aggravate  the 
Allied  military  situation  in  any  part  of  the  world. 

All  of  our  effort  was  then  being  concentrated  on  the  landings  in 
Normandy.  Those  landings,  which  were  to  be  attempted  at  the  be- 
ginning of  June,  represented  the  central  point  of  a  strategy  for  which 
the  western  allies  had  been  long  preparing.  They  represented  not 
only  the  fulfillment  of  our  military  build-up  but  also  the  answer  to 
Marshal  Stalin's  persistent  request  for  the  opening  of  a  second  front. 

In  view  of  the  way  Russia  has  behaved  since  the  war  and  of  the 
way  Soviet  communism  is  now  menacing  the  peace  of  the  world,  it  is 
difficult  for  us  to  think  back  clearly  to  the  summer  of  1944.  At  that 
time,  however,  everyone  concerned  with  our  military  effort  recognized 


INSTITUTE    OF    PACIFIC    RELATIONS  1359^ 

that  we  needed  the  full  cooperation  not  only  of  our  western  allies  but 
of  the  Russians  as  well  if  the  great  gamble  that  was  to  begin  on  D-day 
was  to  succeed.  We  needed  to  do  everything  possible  to  insure  that 
the  Russians  would  maintain  their  pressure  on  the  eastern  front  so 
that  they  would  continue  to  impose  the  wastage  which  was  beginning 
to  strain  both  German  manpower  and  German  war  production.  The 
possibility  of  a  separate  peace  between  Russia  and  Germany  was  a 
nightmare  that  haunted  the  dreams  of  everyone  responsible  for  fight- 
ing the  war. 

It  was  in  the  context  of  this  world  situation  that  the  President 
asked  me  to  undertake  a  mission  to  China.  He  wanted  me  to  discuss 
directly  with  Gen.  Chiang  Kai-shek  the  factors  which  were  permitting 
the  Japanese  to  make  such  tremendous  advances  into  eastern  China. 

In  preparation  for  the  mission,  I  first  talked  with  Secretary  Stimson 
and  General  Marshall,  since  the  purposes  of  the  mission  were  primarily  / 
military. 

Secretary  Stimson  described  the  Chinese  situation  as  the  thorniest 
problem  he  had  and  stated  that  there  was  a  serious  mix-up  between 
various  members  of  the  Soong  and  Chiang  families.  Burma  was  the 
worst  front  that  our  Army  had.  He  was  deeply  concerned  about  the 
graft  which  resulted  from  the  black  market  and  the  way  in  which  our 
airports  were  built. 

General  Marshall  was  somewhat  more  optimistic.  He  also  spoke, 
however,  of  the  graft  in  the  construction  of  our  airpoi-ts  as  well  as 
of  the  antagonisms  within  the  chief  families  of  China. 

Upon  completing  these  conversations,  I  spoke  with  Secretary  Hull, 
who  indicated  much  the  same  concern  as  had  Secretary  Stimson  and 
General  Marshall.  He  recommended  particularly  that  I  rely  on 
Clarence  E.  Gauss,  who  was  then  our  Ambassador  to  China  and  in 
whom  he  had  great  confidence. 

At  Secretary  Hull's  request  I  also  talked  with  Dr.  Stanley  Horn- 
beck,  a  far  eastern  expert  in  the  State  Department,  as  well  as  with 
Dr.  Isaiah  Bowman,  a  world-famous  geographer,  who  was  then  adviser 
to  the  Secretary  of  State. 

In  my  farewell  meeting  with  President  Roosevelt  a  few  days  before 
I  left,  he  placed  great  emphasis  on  solving  the  problem  of  inflation  and  / 
on  getting  both  sides  in  China  to  concentrate  on  fighting  the  Japanese 
instead  of  each  other.  He  said  he  would  be  glad  to  sit  in  as  a  friend 
to  get  both  sides  together ;  all  that  he  wanted  was  results  in  terms  of 
fighting  the  common  enemy.  He  did  not  suggest  that  I  try  to  bring 
about  a  coalition  government  between  the  Chinese  Nationalists  and 
the  Communists;  in  fact,  he  asked  me  not  tO'  see  the  Communists  at 
all,  since  a  visit  by  the  Vice  President  of  the  United  States  might  be  , 
misunderstood  as  indicating  that  our  countiy  favored  the  Communist 
cause. 

He  did  urge,  however,  as  did  Isaiah  Bowman,  that  every  effort  be 
made  to  bring  about  a  settlement  of  pending  differences  between  China 
and  Soviet  Russia  as  soon  as  possible  in  order  to  prevent  Soviet  Russia  ^ 
from  having  a  pretext  for  taking  over  domination  of  China  after  the 
war.  It  was  with  the  background  of  these  instructions,  which  were 
chiefly  military,  that  I  went  to  China. 

Accompanying  me  on  my  China  mission  was  Mr.  John  Carter  Vin- 
cent, Chief  of  the  Division  of  Chinese  Affairs,  who  was  assigned  to  the 

22848—52— pt.  5 8 


1360  INSTITUTE    OF   PACIFIC   RELATIONS 

mission  by  Secretary  Hull  to  represent  the  State  Department.  Also 
accompanying  me  was  Mr.  Owen  Lattimore,  of  the  Office  of  War  Infor- 
mation, who  was  assigned  by  and  at  the  suggestion  of  Mr.  Elmer  Davis, 
then  head  of  OWI. 

If  I  may  interpolate  here,  it  is  my  recollection  that  Mr.  Owen  Latti- 
more's  name  was  first  brought  up  by  President  Roosevelt,  who  was 
enormously  interested  in  Mr.  Lattimore's  knowledge  of  the  problems 
along  the  5,000-mile  border  between  China  and  Russia,  his  knowledge 
of  the  way  in  which  the  nomadic  tribes  wandered  back  and  forth  along 
that  border;  and,  as  I  remember  it,  President  Roosevelt,  who  often 
talked  to  me  about  this  area  of  the  world,  mentioned  at  this  time  that 
there  were  great  potentialities  for  the  future  involved  in  any  dispute 
along  that  area. 

It  does  happen  to  be  the  longest  frontier  between  two  nations  of  any 
place  in  tlie  world,  and  there  are  many  ancient  relationships  there 
about  which  very  few  Americans  have  first-hand  information.  That 
is  my  recollection  of  President  Roosevelt. 

However,  when  I  talked  to  Elmer  Davis,  he  made  it  clear  that  Owen 
Lattimore  was  loaned  to  me  as  a  member  of  OWI  and  not  of  my  staff. 
He  did  not  give  up  his  status  in  OWI  to  go  with  me.  He  went  as  a 
representative  of  OWI.     That  was  made  very  clear  by  Mr.  Davis. 

I  think  the  way  it  is  here  in  the  prepared  statement  it  does  not  give 
the  complete  picture  because  President  Roosevelt  was  greatly  interested 
in  Owen  Lattimore's  accompanying  me. 

Mr.  Lattimore  spoke  Chinese  and  Mongolian  and  had  a  lifelong 
acquaintance  with  China.  The  President  had  previously  mentioned 
liim  to  me  favorably.  As  the  OWI  representative  on  the  mission,  Mr. 
Lattimore  was  expected  to  assist  our  group  in  its  relations  with  the 
press.     That  would  be  in  China,  of  course,  and  not  in  Russia. 

In  order  to  put  what  happened  later  in  sensible  perspective,  I  think 
I  should  explain  the  situation  that  confronted  me  when  I  reached 
Chungking.  A  political  crisis  some  time  earlier  had  concentrated  all 
influence  and  power  in  the  hands  of  the  backward-looking  antiwestern 
group  of  the  generalissimo's  followers.  Ambassador  Gauss  empha- 
sized to  me  at  great  length  the  dangers  of  this  political  development, 
and  how  unfortunate  it  was  that  such  modern-minded,  pro-American 
C  hinese  leaders  as  Dr.  T.  V.  Soong  were  being  entirely  excluded  from 
the  real  conduct  of  affairs. 

At  the  same  time  the  Japanese  had  started  a  major  offensive  in  east 
Uliina.  Gen.  Joseph  W.  Stilwell,  the  American  commander  in  the 
China-Burma-India  theater,  was  wholly  preoccupied  with  the  cam- 
paign in  Burma.  The  Chinese  armies  being  attacked  by  the  Japanese 
had  received  no  American  aid  to  strengthen  them. 

The  Generalissimo  complained  to  me  that  even  the  air  support  for 
them  was  limited  by  General  Stilwell's  policies.  There  had  already 
beffun  a  series  of  shattering  defeats  of  Chiang  Kai-shek's  forces  which 
were  inevitably  having  sharp  political  repercussions  that  threatened 
m  the  future  to  become  violent.  In  the  view  of  practically  every 
American  and  Chinese  I  talked  to  in  China,  the  Generalissimo's  gov- 
ernment was  already  in  serious  danger. 

I  may  add  here  this  danger  was  especially  underlined  and  empha- 
sized when  I  reached  Kunming. 


INSTITUTE    OF   PACIFIC   RELATIONS  1361 

My  conversations  with  the  Generalissimo  have  already  been  reported 
in  some  detail  in  the  State  Department  white  paper,  but  there  are 
two  points  which  have  a  special  relevance  to  Bndenz'  charges. 

Senator  Ferguson.  Might  I  inquire  there  as  to  whether  or  not  when 
you  came  back  you  reported  those  conversations  with  the  Generalissimo 
and  filed  them  with  the  State  Department  ? 

Mr.  Wallace.  I  did  not  file  them  with  the  State  Department,  but 
I  did  incorporate  a  copy  of  them  with  my  July  10  report,  which  I 
handed  to  the  President  on  July  10,  and  it  appears  from  the  documen- 
tation in  the  white  paper  that  John  Carter  Vincent  filed  them  because, 
according  to  the  white  paper,  he  prepared  the  entire  account  of 
conversations. 

However,  I  may  say  that  the  last  conversation  is  almost  word  for 
word  as  1  took  it  down.  John  Carter  Vincent  was  not  present  on  that 
occasion,  and  I  turned  that  memorandum  over  to  John  Carter  Vincent 
to  incorporate  with  the  other  conversations. 

Senator  Fergusoist.  Do  you  know  how  it  came  that  the  State  Dspart- 
ment  did  not  get  your  report?  If  the  President  had  your  conversa- 
tions with  the  Generalissimo  and  he  turned  them  over  to  the  State 
l3epartment,  do  you  know  why  the  report  was  not  turned  over  ? 

Mr.  Wallace.  I  am  quite  sure  that  Vincent  turned  over  the  conver- 
sations directly  to  the  State  Department,  and  in  all  probability  the 
President  did  not  turn  over  my  copy  of  the  conversations  to  the  State 
Department. 

Senator  Ferguson.  Do  you  know  whether  Vincent's  assignment 
required  him  to  keep  memorandums  of  your  own  conversations? 

Mr.  Wallace.  There  certainly  wasn't  any  written  document  as 
to  what  he  was  supposed  to  do  and  what  he  was  supposed  not  to  do. 
In  my  conversation  with  Chiang  Kai-shek  it  was  obviously  very 
difficult  for  me  to  keep  a  record  because  I  was  doing  the  speaking. 
Therefore,  it  worked  out  perfectly  naturally. 

As  to  w^hether  I  told  him  to  do  it,  I  don't  know,  but  it  must  have 
been  that  I  did  ask  him  to  keep  a  record  while  I  was  engaged  in  the 
conversation.     It  is  the  only  thing  that  could  have  been  done. 

Senator  Ferguson.  He  kept  the  record  rather  than  for  you  after 
the  conversation  to  write  up  a  memorandum  ? 

Mr.  Wallace.  That  is  right. 

Mr.  Ball.  Mr.  Wallace  has  testified  with  the  exception  of  the  last 
conversation  with  the  Generalissimo,  which  occurred,  as  explained 
in  the  statement,  in  the  car  going  to  the  airport  where  John  Carter 
Vincent  was  not  present. 

Mr.  Wallace.  That  is  with  the  exception  of  the  last  memorandum 
which  from  the  standpoint  of  future  action  was  the  most  important  of 
all  the  conversations. 

Senator  Ferguson.  I  think  at  one  time  you  expressed  surprise  that 
your  report  to  the  President  had  not  been  in  the  State  Department. 

Mr.  Wallace.  Yes;  I  did.  It  didn't  get  into  the  press  very  widely, 
but  I  did  express  surprise  that  it  hadn't  gotten  to  the  State  Depart- 
ment. The  first  knowledge  I  had  that  it  got  to  the  State  Depart- 
ment, that  it  was  finally  in  the  hands  of  the  State  Department,  was  the 
letter  I  received  from  Dean  Rusk  on  December  27  of  1950  in  which 
he  said  he  understood  this  was  in  the  Secretary's  office. 


1362  INSTITUTE    OF    PACIFIC    RELATIONS 

Senator  Ferguson.  Now  do  you  know  where  that  copy  came  from  ? 

Mr,  Wallace.  I  have  no  idea  where  it  came  from. 

Senator  Ferguson.  You  did  not  furnish  it  ? 

Mr.  Wallace.  I  didn't  furnish  it;  no.  I  was  never  asked  by  the 
State  Department  to  furnish  it.  The  only  request  that  came  to  me 
for  that  specifically  was  the  request  from  Senator  O'Conor  in  December 
of  1949. 

Senator  O 'Conor.  I  might  say  that  you  complied  with  that  very 
willingly  and  instantly  when  I  did  make  the  request  of  you. 

Mr.  Wallace.  Yes ;  of  course. 

First,  as  I  look  back,  I  think  I  must  say  that  the  Generalissimo  and 
I  talked  somewhat  at  cross  purposes  in  our  discussion  of  the  Commu- 
nist problem.  In  the  win-the-war  atmosphere  of  that  time,  it  was 
hard  for  me  to  believe  that  the  Nationalists  and  Communists  could 
not  at  least  exchange  military  information  in  order  to  defeat  the  Japa- 
nese, just  as  the  Western  Allies  were  working  with  the  Russians  al- 
though representing  opposing  political  philosophies.  I  had  in  mind 
the  sort  of  thing  President  Roosevelt  had  talked  to  me  about;  ex- 
changes of  intelligence,  combined  efforts  against  Japanese  forces,  and 
the  like. 

The  Generalissimo,  on  the  other  hand,  must  have  assumed  that 
military  cooperation  was  impossible  without  political  cooperation,  to 
which  he  was  strongly  opposed.  Hence,  on  this  point,  as  I  wired 
President  Roosevelt,  Chiang  Kai-shek  seemed  to  me  imbued  with 
prejudice.  I  could  not  see  at  that  time  why  he  was  opposed  to  re- 
forming the  common  Chinese  military  front  against  the  Japanese 
which  had  existed  at  the  start  of  the  war.  That  is,  the  Chinese-Japa- 
nese war. 

Second,  and  most  important,  as  my  cable  indicates,  the  General- 
issimo said  to  me  very  frankly  that  he  lacked  confidence  in  General 
Stilwell  while  he  had  high  confidence  in  General  Chennault.  His 
stated  reason  for  his  lack  of  confidence  in  General  Stilwell  was  Stil- 
well's  poor  understanding  of  political  problems. 

•In  any  case,  it  was  very  clear  to  me,  from  the  tone  and  language 
of  the  Generalissimo,  that  he  and  Stilwell  could  not  cooperate.  It 
seemed  to  me  further  it  was  an  unmanageable  situation  to  have  an 
American  commander  in  China  who  did  not  enjoy  the  Generalissimo's 
confidence  and  could  not  achieve  friendly  cooperation  with  him.  The 
military  situation  in  China  was  already  critical. 

In  fact,  Chiang  Kai-shek  gave  me  the  impression,  also  indicated 
in  my  cable  to  the  President,  of  hardly  knowing  which  way  to  turn. 
This  greatly  increased  the  importance  of  having  an  American  com- 
mander in  China  who  could  win  the  confidence  that  Stilwell  had  not 
won,  and  could  genuinely  help  the  Generalissimo  in  the  hard  times 
through  which  he  was  passing. 

When  the  Generalissimo  took  me  to  the  airport  at  Chungking,  he 
and  I  were  alone  in  the  car  with  Mme.  Chiang,  who  served  as  inter- 
preter. He  spent  the  entire  hour — it  might  have  been  a  little  longer 
than  an  hour — while  we  were  together  giving  me  a  personal  message 
to  President  Roosevelt.  His  mind  worked  with  great  clarity,  and  I 
took  down  his  words  most  faithfully ;  they  are  found  as  he  gave  them 
to  me,  as  nearly  as  the  speed  of  my  pencil  could  permit,  on  page  559 
of  the  white  paper. 


INSTITUTE    OF   PACIFIC   RELATIONS  1363 

So  far  as  action  is  concerned,  the  altliogether  significant  part  is 
item  9  on  page  559,  which  gives  Cliiang  Kai-shek's  views  on  June 
24,  1944,  as  to  how  Eoosevelt  could  help  him. 

Senator  Ferguson.  Could  I  just  inquire  now,  Mr.  Wallace,  as  to 
whether  or  not  you  know  how  that  particular  memorandum  in  re- 
lation to  your  conversation  while  you  were  with  the  Generalissimo 
alone,  and  which  you  handed  to  the  President,  got  into  the  white  paper, 
and  your  report  did  not  ? 

Mr.  Wallace.  The  white  paper  reported  all  the  conversations  I  had 
with  Chiang  Kai-shek.  I  dictated,  I  presume  to  Owen  Lattimore, 
anyhow  I  put  in  Owen  Lattimore 's  hands — I  don't  mean  Owen  Lat- 
timore; I  mean  John  Carter  Vincent's  hands — as  quickly  as  I  could 
after  this'  ride  to  the  airport  exactly  what  took  place  on  the  ride  to 
the  airport  so  he  could  include  it  in  the  report  which  he  would  later 
make  to  the  State  Department. 

Senator  Ferguson.  If  you  were  reporting  that  kind  of  conversa- 
tion to  the  State  Department,  then  why  didn't  you  file  a  copy  of  your 
report  to  the  President  with  the  State  Department? 

Mr.  Wallace,  They  were  two  altogether  separate  things.  The  re- 
port to  the  President  was  a  summary  of  the  trip,  and  this  was  a  series 
of  conversations  with  Chiang  Kai-shek  on  the  diplomatic  level,  which 
were  properly  the  property  of  the  State  Department.  I  suppose  you 
€0uld  quibble  and  say  this  was  in  a  little  different  category  than  the 
other  diplomatic  conversations,  but  all  I  can  say  is  that  I  did  not  so 
regard  it  at  the  time,  and  I  immediately,  as  fast  as  I  could,  passed 
it  on  to  John  Carter  Vincent  to  include  it  in  the  other  conversations. 

Chiang  Kai-shek  wanted  a  contact  man  with  the  President  who 
could  handle  both  political  and  military  matters'.  He  criticized  Stil- 
well  and  praised  Chennault,  as  he  had  before. 

With  these  thoughts  in  mind  I  went  on  to  Kunming,  where  John 
Carter  Vincent  and  I  were  the  guests  of  General  Chennault.  General 
Chennault's  simple  outline  of  the  dangers  and  threats  of  the  Japanese 
offensive  in  east  China  further  drove  home  the  critical  nature  of  the 
situation. 

I  resolved,  therefore,  to  send  an  immediate  message  to  the  Presi- 
dent, briefly  reporting  on  my  talks  with  the  Generalissimo,  describing 
the  crisis  in  China,  and  suggesting  corrective  action.  The  best  cor- 
rective I  could  think  of  was  to  provide  the  Generalissimo  with  an 
American  commander  in  China  who  would  really  work  with  and 
support  him.  Hence  it  seemed  to  me  necessary  to  recommend  the 
relief  of  General  Stilwell. 

On  June  26  at  General  Chennault's  house  I  went  over  the  whole 
problem  with  John  Carter  Vincent  and  Joseph  Alsop,  whom  General 
Chennault  had  assigned  to  act  as  my  escort.  In  the  course  of  a  long 
evening  of  discussion  the  three  of  us  batted  the  whole  problem  back 
and  forth.  With  the  wholehearted  concurrence  of  both  Alsop  and 
Vincent,  I  decided  upon  a  cable  to  the  President  suggesting  that 
General  Stilwell  be  replaced  in  command  in  China. 

Also,  with  their  concurrence  I  decided  that  the  new  commander  in 
China  ought  to  be  given  political  authority  as  the  President's  per- 
sonal representative.  The  Generalissimo  had  asked  for  this,  and  it 
seemed  to  me  that  the  American  commander  must  have  this  direct 
authority  from  the  President  in  order  to  obtain  Chiang's  full  con- 
fidence.    Vincent  went  along  with  this  view. 


1364  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Ferguson.  Might  I  discuss  with  you  this  last  paragraph  ? 
Did  you  ask  Vincent  for  his  suggestions  on  other  matters ;  for  instance, 
in  relation  to  your  report  to  the  President  ? 

Mr.  Wallace.  I  don't  remember  whether  I  did  or  not.  It  is  quite 
possible  I  might  have  asked  for  suggestions.  I  would  think  I  would, 
but  I  don't  remember. 

Senator  Ferguson.  Did  you  discuss  with  Mr.  Alsop  any  of  the  other 
problems  besides  the  removal  of  General  Stilwell  ? 

Mr.  Wallace.  With  Alsop  I  discussed  fully  and  completely  the 
whole  military  situation  in  the  area  for  which  General  Chennault  was 
'    responsible.     I  had  very  extended  conversations  with  Mr.  Alsop. 

Senator  Ferguson.  Mr.  Alsop  was  assigned  as  an  escort? 

Mr.  Wallace.  Yes. 

Senator  Ferguson.  What  was  his  rank  at  the  time? 

Mr,  Wallace.  The  committee  asked  that  before,  and  I  didn't  remem- 
ber.    I  have  inquired  since,  and  I  find  he  was  a  lieutenant. 

Senator  Ferguson.  You  felt  free  to  discuss  with  a  lieutenant,  Mr. 
Alsop,  this  important  problem  of  the  removal  of  a  general  from  the 
theater  in  China? 

Mr.  Wallace.  I  have  never  been  a  stickler  for  rank,  sir.  Hig  rank, 
so  far  as  I  was  concerned,  was  as  an  escort  assigned  to  me  by  General 
Chennault,  and  it  appeared — and  this  is  the  altogether  important 
thing — that  he  had  the  complete  confidence  of  General  Chennault. 

Senator  Ferguson.  Did  you  consult  with  General  Chennault  as  to 
the  removal  of  General  Stilwell  ? 

Mr.  Wallace.  I  don't  think  I  did. 

Senator  Ferguson.  Did  you  consult  any  other  general  ? 

Mr.  Wallace.  I  am  sure  I  didn't  consult  any  other  general.  This 
was  too  delicate  a  matter  to  consult  with  generals. 

Senator  Ferguson.  I  was  wondering  on  this  delicate  matter  why 
you  consulted  with  a  lieutenant.  I  should  like  to  have  an  explanation 
of  it. 

Mr.  Wallace.  The  explanation  is  very  simple.  I  had  known  Alsop 
before.  He  was  the  escort  assigned  by  General  Chennault.  He  en- 
joyed the  complete  confidence  of  General  Chennault,  and  his  presenta- 
tion was  succinct  and  made  sense  to  me.  That  was  what  I  wanted. 
Obviously  this  was  the  kind  of  thing  you  just  simply  couldn't  talk 
about  outside  the  smallest  possible  circle,  and  I  did  not. 

Now  Mr.  Alsop  may  have  passed  the  information  on  to  General 
Chennault,  but  to  the  best  of  my  knowledge  I  didn't  say  a  word  to 
General  Chennault  about  it,  and  to  the  best  of  my  recollection  General 
Chennault  said  nothing  in  any  way  impugning  or  discrediting  Gen- 
eral Stilwell. 

Senator  Ferguson.  Do  I  understand  then  that  the  only  military 
man  consulted  and  the  only  State  Department  man  consulted  outside 
of  the  Chinese  were  Mr.  Alsop  and  Mr.  Vincent? 

Mr.  Wallace.  That  is  correct. 

Senator  Ferguson.  You  did  consider  this  a  very  important  matter? 

Mr.  Wallace.  I  considered  it  a  top-secret  matter. 

Senator  Ferguson.  Did  you  consult  with  Mr.  Owen  Lattimore 
about  it  ? 

Mr.  Wallace.  No  ;  to  the  best  of  my  knowledge  he  never  knew  about 
this  until  it  was  released  in  the  press  this  September. 


INSTITUTE    OF   PACIFIC   RELATIONS  1365 

Senator  Ferguson.  Was  it  your  conversation  with  the  Generalissimo 
in  the  car  alone  that  led  you  to  the  conclusion  you  should  look  into 
this  matter  about  the  removal  of  General  Stilwell? 

Mr.  Wallace.  That  was  the  completely  dominating  factor,  rein- 
forced by  the  increasing  seriousness  of  the  military  situation  which  1 
found  when  I  came  to  Kunming. 

First  was  the  very  human  need  of  the  Generalissimo,  as  expressed 
on  the  way  to  the  airport,  as  I  described  it  in  the  last  memorandum  in 
the  white  paper  and,  second,  was  the  fact  that  the  military  situation 
was  even  more  serious  than  I  thought,  as  developed  by  General  Chen- 
nault  at  Kunming. 

So  I  felt  that  there  was  no  time  to  lose,  and  I  moved  into  action  as 
fast  as  I  could. 

Senator  Ferguson.  Did  Mr.  Vincent  and  Mr.  Alsop  agree  on  what 
should  be  done  about  General  Stilwell? 

Mr.  Wallace.  I  think  you  were  absent  when  we  went  over  all  of  this 
this  morning. 

Senator  Ferguson.  I  do  not  want  to  cover  it  if  you  did. 

Mr.  Wallace.  I  think  we  went  over  all  of  it  this  morning.  I  in- 
dicated we  batted  it  back  and  forth  and  arrived  at  a  unanimity  of 
opinion,  and  I  remember  no  exception  which  either  one  of  them  took 
to  the  proposals. 

Senator  Ferguson,  I  just  want  the  record  to  show  that  I  had  a  con- 
ference with  the  House  this  morning  and  was  unable  to  be  present. 

Mr.  Sourwine.  There  was  testimony  this  morning  by  Mr.  Wallace, 
in  response  to  questioning,  that  there  was  nothing  in  this  cable  that 
Mr.  Vincent  objected  to  in  any  way,  that  whenever  there  was  an 
objection  they  would  talk  it  out  and  square  it  up,  and  it  did  not  go  in 
if  there  was  any  objection  to  it. 

Senator  Ferguson.  I  will  read  the  record. 

Mr.  Wallace.  I  was  reluctant,  however,  to  suggest  the  replacement 
of  Stilwell  without  offering  someone  who  could  fill  his  place.  My 
first  notion  was  to  recommend  General  Chennault,  in  view  of  the  Gen- 
eralissimo's avowed  confidence  in  him  and  the  impression  he  had 
made  on  me. 

Vincent  raised  no  objection  to  this  proposal.  It  was  Alsop,  a  mem- 
ber of  Chennault's  staff,  who  spoke  against  it.  As  I  recall  he  offered 
two  main  reasons  for  not  recommending  Chennault  :  ( 1 )  Chennault 
could  not  be  spared  from  his  job  in  Kunming  of  directing  the  air 
effort  which  was  then  the  sole  support  of  the  hard-pressed  Chinese 
armies,  and,  (2)  the  name  of  Chennault,  who  was  unpopular  in  the 
Pentagon,  would  never  be  approved  by  the  Army  staff  and  would 
only  raise  prejudice  against  my  recommendation  to  replace  Stilwell. 
These  seemed  vSound  objections. 

Finally,  I  decided  to  suggest  General  Wedemeyer  as  a  man  for 
whom  the  Generalissimo  had  expressed  admiration,  and  as  a  logical 
candidate  in  view  of  his  record  and  position  as  deputy  commander  in 
the  Southeast  Asia  theater. 

Senator  Ferguson.  Did  Mr.  Alsop  explain  what  the  Pentagon's 
objection  was? 

_Mr.  Wallace.  He  probably  didn't  use  any  phraseology  of  that 
kind.  I  can't  recall  any  phraseology.  It  was  just  merely  probably 
some  such  phrase  as  "It  would  raise  hell  in  Washington"  or  something 
to  that  effect.    This  is  what  it  meant. 


1366  INSTITUTE    OF.   PACIFIC    RELATIONS 

Senator  Ferguson.  This  was  tlie  substance? 

Mr.  Waixace.  This  would  be  what  it  would  mean. 

Senator  Ferguson.  Did  it  impress  you  that  this  would  be  a  valid 
objection? 

Mr.  Wallace.  Yes ;  it  did  impress  me  that  it  would  be  a  valid  ob- 
jection. 

Senator  Ferguson.  In  other  words,  if  the  Pentagon  did  not  want ' 
him 

Mr.WALi.ACE.  It  just  simply  was  not  the  wise  thing  to  do. 

Senator  O'Conor.  May  I  interrupt  to  ask  you  there  if  the  sugges- 
tion as  to  General  Wedemeyer's  availability  and  desirability  was  first 
made  by  you  ? 

Mr.  Wallace.  No;  I  don't  think  it  was  made  by  me.  I  found  out 
from  someone  that  he  was  agreeable  to  Chiang  Kai-shek.  As  I  have 
previously  testified — I  don't  know  whether  it  was  Chiang  Kai-shek 
himself,  whether  it  was  T.  V.  Soong,  whether  it  was  Joe  Alsop — but 
all  I  remember  is  that  somebody  told  me,  and  I  think  it  appears  in  the 
cable,  that  he  was  persona  grata  to  Chiang  Kai-shek.  From  whom 
I  obtained  the  information  I  can't  say. 

Mr.  Alsop  may  have  some  recollection  on  that.  I  don't  think  I 
have  asked  him  on  that  particular  point,  but  he  may  have  some  recol- 
lection. 

Senator  O'Conor.  I  knew  you  had  previously  expressed  some  doubt, 
but  I  thought  you  had  possibly  refreshed  your  recollection  on  it. 

Mr.  Wallace.  No;  I  don't  know.  It  could  quite  possibly  be  Mr. 
Alsop.  I  knew  it  couldn't  get  outside  of  this  circle  because  of  the 
delicacy  of  the  situation.  That  circle  would  be  the  Generalissimo, 
T.  V.  Soong,  Madame  Chiang,  and  Joseph  Alsop.  It  couldn't  have 
been  outside  of  that  circle.    I  don't  believe  it  could. 

I  might  possibly  include  Clarence  Gauss  in  that  circle,  also,  with 
whom  I  had  a  very  confidential  relationship,  but  I  can't  say  as  to 
that,  and  this  is  just  merely  reasoning  in  retrospect  and  not  on  the 
basis  of  memory. 

My  cable  was  sent  from  Kunming  that  evening,  and  relayed  from 
New  Delhi  to  Washington  on  June  28.  It  was  not  shown  to,  or  dis- 
cussed with,  anyone  except  Vincent  and  Alsop. 

This  is  the  story  of  the  Kunming  cable  which  comprised  my  main 
action  recommendations  to  the  President.  It  is  significant  that 
Buclenz  in  comm.enting  on  my  June  26  cable,  has  studiously  refrained 
from  referring  to  what  was  by  far  the  most  important  recommenda- 
tion of  that  cable — the  removal  of  General  Stilwell  from  command  in 
China. 

That  recommendation  was  made,  as  I  have  shown,  almost  wholly  on 
the  basis  of  a  complaint  by  Gen.  Chiang  Kai-shek.  The  recommenda- 
tion that  Stilwell's  successor  be  a  personal  representative  of  the  Pres- 
ident was  specifically  in  response  to  the  Generalissimo's  request. 

If  my  recommendation  for  the  removal  of  General  Stilwell,  made 
as  a  result  of  the  Generalissimo's  request,  was  following  the  Communist 
line,  then  the  Generalissimo  was  himself  following  the  Communist 
line  in  making  that  request.  This  illustrates  the  utter  absurdity  of  the 
testimony  which  Budenz  has  given. 

Biidenz  has  testified  that  "the  Communists  were  very  much  opposed 
to  General  Chennault  and  didn't  want  him  in  the  picture  at  all." 


INSTITUTE    OF   PACIFIC   RELATIONS  1367 

However,  as  I  have  shown,  I  initially  proposed  to  recommend  the  ap- 
pointment of  General  Chennault  as  General  Stilwell's  assistant  and 
this  proposal  was  concurred  in  by  John  Carter  Vincent  who,  Budenz 
implied,  was  influencing  me  to  follow  a  Communist  line.  It  was  only 
after  considering  the  advice  of  a  member  of  General  Chennault's  own 
staff,  Mr.  Alsop,  that  I  eliminated  the  Chennault  proposal. 

I  thiiik  anyone  who  reads  both  of  my  reports  must  conclude  that 
I  was  interested  only  in  winning  the  war  and  that  I  felt  the  Gen- 
eralissimo must  be  supported  in  order  to  accomplish  this.  My  sec- 
ond report,  dated  July  10,  1944,  was  made  to  the  President  on  my 
return  to  the  United  States.  To  the  best  of  my  recollection  I  con- 
sulted no  one  in  the  course  of  its  preparation  although  I  did  study 
various  memoranda  which  had  accumulated  on  my  trip. 

In  that  report  I  emphasized  specifically  not  only  the  views  of  Am- 
bassador Gauss,  but  the  views  expressed  to  me  by  T.  V.  Soong.  Soong, 
as  this  committee  knows,  was  always  a  great  friend  of  the  United 
States,  and  was  subsequently  Premier  of  China  under  the  Gen- 
eralissimo; he  was  certainly  not  in  any  way  pro-Communist. 

In  my  report  I  stated  that  Soong  was  "quite  outspoken,  saying  that 
it  was  essential  that  something  'dramatic'  be  done  to  save  the  situation 
in  China,  that  it  was  '5  minutes  to  midnight'  for  the  Chungking  Gov- 
ermnent."  Without  being  specific  he  spoke  of  "need  for  greatly  in- 
creased United  States  Army  air  activity  in  China  and  for  reformation 
of  the  Chungking  Government."  He  said  that  "Chiang  Avas  be- 
wildered and  that  there  were  already  signs  of  disintegration  of  his 
authority." 

Budenz  has  testified  that  my  criticism  of  the  Generalissimo's  gov- 
ernment was  in  accord  with  the  objectives  of  the  Communists.  He 
implies  that  the  sending  of  any  indication  to  Washington  that  the 
Generalissimo  "was  incapable  of  controlling  the  situation  for  a  long 
period  of  time"  was  one  of  the  central  objectives  of  the  Coimnunists, 
who  wanted  to  use  this  as  an  opening  wedge  for  a  coalition  government. 
Budenz  suggests  that  anyone  who  criticized  the  Generalissimo's  gov- 
ernment to  Washington  was  thereby  furthering  the  Communists'  ends. 

This  is  nonsense.  Anyone  who  knew  anything  about  China  at  that 
time — and  this  included  General  Chennault — was  aware  that  if  the 
Generalissimo's  government  were  to  be  saved  from  ultimate  and  total 
collapse  that  government  had  to  be  reformed  drastically  and  without 
delay.  The  best  way  to  insure  its  ultimate  collapse  and  a  Communist 
take-over,  was  to  let  it  continue  in  its  state  of  physical  and  spiritual 
anemia. 

It  was  in  recognition  of  this  convinction,  wliich  I  shared  with  al- 
most anyone  who  knew  anything  about  China  at  that  time,  whether 
American  or  Chinese,  that  I  set  forth  at  the  end  of  my  July  10  report  a 
"possible  policy  line  relative  to  liberal  elements  in  China." 

As  a  part  of  that  line  of  policy  I  advocated  support  of  Chiang  com- 
bined with  support  of  a  new  and  more  liberal  coalition  to  which  I 
hoped  Chiang  would  then  swing  over  in  the  best  interests  of  the 
Chinese  people,  as  well  as  the  best  national  interest  of  the  United 
States. 

The  political  coalition  which  I  recommended  that  we  foster  in 
China  was  not  a  coalition  with  the  Chinese  Communists,  but  a  coali- 


2368  INSTITUTE    OF   PACIFIC   RELATIONS 

tion,  recruited  from  within  the  area  controlled  by  the  Chungking 
Government,  consisting  as  I  put  it,  of — 

progressive  banking  and  commercial  leaders  of  the  K.  P.  Chen  type,  with  a 
competent  understanding  both  of  their  own  country  and  of  the  contemporary 
western  world;  the  large  group  of  western-trained  men  whose  outlook  is  not 
limited  to  perpetuation  of  the  old  landlord-dominated  rural  society  of  China; 
and  the  considerable  group  of  generals  and  other  officers  who  are  neither  sub- 
servient to  the  landlords  nor  afraid  of  the  peasanti-y. 

Generals  of  this  type  are  named  in  the  earlier  part  of  the  report — Gen- 
erals Chen  Cheng,  Chang  Fa-Kwei  and  Pai  Chunghsi. 

It  is  significant  that,  in  the  years  which  have  passed  since  then,  not 
a  single  one  of  them  has  deserted  to  the  Communist  cause.  Indeed, 
General  Chen  Cheng  is  now  prime  minister  of  tlie  Nationalist  Govern- 
ment on  Formosa. 

My  intention  was  to  lirge  American  support  for  a  return  to  power 
of  the  more  modern-minded,  pro- American  Nationalist  leaders  whose 
loss  of  power  had  been  so  much  deplored  by  Ambassador  Gauss  during 
my  talks  with  him  in  Chungking. 

While  it  is  all  too  easy  to  second-guess  events,  I  feel  that  if  the 
course  of  action  which  I  recommended  in  my  cable  had  been  promptly 
followed,  the  situation  in  China  would  have  been  improved. 

I  feel  further  that  the  policy  which  I  recommended  in  my  letter 
offered  the  best  hope  for  strengthening  the  position  of  the  Nationalist 
Government  of  China  and  preventing  the  kind  of  "political  vacuum" 
which,  as  I  warned  the  President  in  my  report,  would  be  "filled  in 
ways  which  you  will  understand."  By  that  I  meant,  of  course,  a 
Communist  take-over. 

I  refuse  to  believe  that  members  of  a  great  and  powerful  body,  the 
most  distinguished  legislative  body  in  the  entire  world,  can  possibly 
fall  for  testimony  that  it  was  following  the  Communist  line  to  recom- 
mend that  Stilwell  be  replaced  by  Wedemeyer  in  1944.  Never  have  I 
seen  such  unmitigated  gall  as  that  of  this  man  in  coming  before  a 
committee  of  the  United  States  Senate  to  utter  such  nonsense.  I  say 
it  is  an  affront  to  the  dignity  of  a  great  and  honorable  body,  over  which 
I  had  the  honor  of  presiding  for  4  years. 

Mr.  Morris.  Mr.  Wallace,  as  personal  representative  of  President 
Roosevelt,  having  visited  Generalissimo  Chiang  Kai-shek,  was  it  nec- 
essary for  you  to  follow  out  the  recommendation  of  Chiang  Kai-shek 
to  the  President  of  the  United  States  ? 

Mr.  Wallace.  Was  it  necessary  for  me  to  ? 

Mr.  Morris.  Yes. 

Mr.  Wallace.  Obligatory  ? 

Mr.  Morris.  Characterize  it  any  way  you  want. 

Mr.  Wallace.  I  don't  think  it  was  obligatory.  I  think  it  was  com- 
mon sense  to  pass  on  to  the  President  the  cry  of  one  of  our  leading 
allies  in  time  of  need. 

Mr.  Morris.  Were  you  doing  anything  more  than  that  when  you 
made  that  recommendation  that  General  Stilwell  be  removed  ?  Were 
you  doing  anything  more  than  relaying  the  recommendation  or  desire 
of  the  Generalissimo  to  the  President  ? 

Mr.  Wallace.  I  can  say  this.  I  was  deeply  moved,  as  I  stated  in 
the  hearing  before  the  executive  committee,  by  the  cry  of  a  man  in 
deep  trouble.  I  may  not  have  put  it  exactly  that  way,  but  that  is 
essentially  what  I  say.    I  was  deeply  moved  by  the  cry  of  a  man  in 


INSTITUTE    OF   PACIFIC   RELATIONS  1369 

^eat  trouble,  and  I  was  moved  to  start  in  to  help  liim  as  soon  as 
possible. 

If  you  say  I  am  doing  this  pro  forma,  I  would  merely  say  if  I  were 
doing  it  pro  forma,  would!  have  moved  with  such  exceeding  speed? 
I  would  say  that  I  moved  with  really  exceptional  speed  to  get  this  to 
the  President,  so  I  would  say  it  was  going  beyond,  shall  we  say,  in 
view  of  the  difficulties  of  communications  existing  out  there,  it  was 
going  beyond  the  action  of  simple  duty.  It  was  really  moving  with 
speed  and  impetus. 

Mr.  Morris.  Mr.  Wallace,  did  the  Communists  object  to  the  recom- 
mendation that  General  Stilwell  be  removed  ? 

Mr.  Wallace.  I  don't  know  what  the  Communists  did  during  this 
period. 

Mr.  Morris.  Did  they  object  to  his  actual  removal  ? 

Mr.  Wallace.  I  have  no  idea. 

Mr.  Morris.  Is  it  not  the  heart  of  your  contention  that  anyone  who 
did  not  object  to  the  removal  of  General  Stilwell  must  necess^ily  have 
been  a  non-Communist.    Is  that  not  your  whole  case,  Mr.  Wallace? 

Mr.  Wallace.  Well,  I  am  just  going  by  Budenz's  testimony.  He 
claims  that  the  Communists  were  not  opposed  to  Wedemeyer  at  the 
time. 

Mr.  Morris.  We  are  talking  about  General  Stilwell's  removal. 

Mr.  Wallace.  Yes,  Stilwell's  removal.  I  will  say  that  I  have  found 
out  recently  that  they  were  definitely  and  clearly  opposed. 

Mr.  Morris.  How  did  they  oppose  it?  Will  you  give  us  the  evi- 
dence, Mr.  Wallace? 

Mr.  Wallace.  Yes,  I  can  give  you  the  evidence.  I  don't  know  that 
we  have  it  with  us,  but  that  can  be  obtained,  that  they  clearly  and 
definitely  opposed  it. 

Mr.  Morris.  Is  that  not  the  whole  issue  ? 

Mr.  Wallace.  Yes,  I  think  that  is  the  whole  issue;  and  I  think  that 
ought  to  be  put  in  the  record. 

Senator  Ferguson.  Do  you  think  you  have  that  in  writing? 

Mr.  Ball.  Yes;  we  can  supply  that. 

Mr.  Wallace.  I  have  asked  Mr.  Ball  to  get  the  full  evidence  along 
this  line  because  it  is  the  very  heart  of  the  case. 

Mr.  SouRwiNE.  Mr.  Chairman,  may  I  interpose  at  that  point?  I 
don't  mean  to  stop  Mr.  Morris  from  anything  he  has  to  introduce,  but 
it  does  seem  it  might  be  suggested  for  the  record  that  the  question  of 
determining  who  was  or  was  not  a  Communist  on  the  basis  of  an  act 
or  acts  which  might  have  been  performed  at  a  specified  time,  while  it 
may  be  pertinent  and  relevant,  is  not  the  whole  question. 

There  were  two  prongs  of  the  question  which  is  raised  with  regard 
to  possible  influence  over  Mr.  Wallace,  and  in  justice  to  Mr.  Wallace  I 
believe  it  should  be  pointed  out  that  the  question  on  the  first  part  is, 
**Was  Mr.  Wallace  influenced  by  anybody?"  And  that  question  has 
to  be  answered  before  you  can  ask  the  question  whether  he  was  in- 
fluenced by  a  Communist  or  any  other  political  viewpoint. 

I  should  also  think,  in  justice  to  Mr.  Wallace,  that  the  testimony 
so  far  shows  very  clearly  that  Mr.  Wallace  has  stated  repeatedly  that 
John  Carter  Vincent  did  have  a  part  in  the  formulation  of  these 
cables,  that  it  was  thoroughly  discussed  with  him,  that  when  he  raised 
objection  the  thing  was  talked  out  and  the  cable  eventually  contained 
nothing  to  which  he  did  object;  and,  therefore,  it  would  seem  perfectly 


1370  INSTITUTE    OF   PACIFIC   RELATIONS 

clear  that  there  was  influence,  that  Mr.  John  Carter  Vincent  did  have 
a  part  in  this  whole  thing. 

Is  that  not  correct,  sir? 

Mr.  Wallace.  John  Carter  Vincent  undoubtedly  had  a  part  in  the 
discussion  of  the  cables. 

Mr.  SouKwiNE.  Right. 

Mr.  Wallace.  As  to  just  what  part  he  had,  all  I  can  say  is  that  I 
remember  we  continually  batted  back  and  forth  what  was  to  go  into 
the  cables.  Whether  he  objected  to  anything,  he  might  remember. 
I  don't  remember  of  his  objecting  to  anything. 

Senator  Ferguson.  Mr.  Wallace,  this  removal  of  General  Stilwell 
was  of  such  importance  that  you  took  it  up  immediately  instead  of 
waiting  to  come  back  to  the  United  States? 

Mr.  Wallace.  That  is  correct. 

Senator  Ferguson.  And  this  cable  that  you  sent  would  be  secret  and 
would  go  through  the  Army  communications? 

Mr.  Wallace.  It  did. 

Senator  Ferguson.  Was  it  coded  or  not  ? 

Mr.  Wallace.  Yes ;  it  was  coded. 

Senator  Ferguson.  W^ith  the  State  Department  code  or  somebody 
else's  ? 

Mr.  Wallace.  I  don't  know.  I  suppose  it  might  have  been  in  Army 
code.  I  don't  know  anything  about  that.  The  only  reason  I  know 
it  was  coded  is  because  when  I  came  to  send  the  document  to  President 
Truman  I  found  it  so  stated. 

Senator  Ferguson.  Did  you  keep  a  copy  of  it? 

Mr.  Wallace.  I  think  I  have  a  copy,  but  this  one  is  the  one  appar- 
ently that  was  received  by  me  from  the  War  Department  in  August 
of  1944. 

Senator  Ferguson.  Is  this  cable  in  the  white  paper  ? 

Mr.  AVallace.  No. 

Senator  Ferguson.  It  is  a  secret  document  ? 

Mr,  Wallace.  It  was  so  marked  at  the  time,  I  believe. 

Senator  Flrguson.  Is  it  still  a  secret  document  ? 

Mr.  Wallace.  I  wouldn't  think  so  under  the  circumstances. 

Senator  Ferguson.  It  came  through  the  Army? 

Mr.  Wallace.  Yes ;  it  came  through  the  Army. 

Senator  Ferguson.  So,  they  knew  you  were  recommending  the  re- 
moval of  a  major  general  in  a  theater? 

Mr.  Wallace.  Somebody  in  New  Delhi  may  have  learned  it. 

Senator  Ferguson.  Yes ;  it  came  through  their  cable.  Their  trans- 
laters  here  would  catch  it. 

Mr.  Wallace.  Of  course,  I  was  not  particularly  aware  at  the  time 
as  to  how  it  would  be  transmitted.     I  learned  it  after  the  fact. 

Senator  Ferguson.  Yes.  You  were  recommending  with  the  advice 
of  Mr.  Alsop  and  Mr.  Vincent  the  removal  of  a  major  general  in  a 
theater  ? 

Mr.  Wallace.  That  is  correct. 

Senator  Ferguson.  And  outside  of  Chiang  Kai-shek  you  had  no 
other  military  advisers  except  Mr.  Alsop,  who  was  then  in  the  mili- 
tary? 

Mr.  Wallace.  That  is  right. 

Senator  Ferguson.  You  were  doing  that  through  the  chamiels  of 
the  Army.     Now,  did  you  assign  your  reasons  in  this  cable? 


INSTITUTE    OF   PACIFIC   RELATIONS  1371 

Mr.  Wallace.  Well,  it  is  spelled  out  in  the  closing  part  of  the  cable, 
if  you  care  to  read  it. 

Senator  Ferguson.  I  assume  this  cable  is  a  copy  from  your  file  ? 

Mr.  Wallace.  This  comes  from  what  I  transmitted  to  the  Presi- 
dent, and  I  believe  the  White  House  must  have  had  this  mimeographed 
directly  from  my  files ;  yes. 

I  say  in  the  closing  part  of  this  cable,  after  describing  the  seriousness 
of  the  situation : 

An  American  general  oflScer  of  the  highest  caliber,  in  whom  political  and  mili- 
tary authority  will  be  at  least  temporarily  united,  is  needed.  It  appears  that 
operations  in  Burma  make  it  impossible  for  General  Stilwell  to  maintain  close 
contact  with  Chiang.  Furthermore,  Chiang  informed  me  that  Stilwell  does  not 
enpoy  his  confidence  because  of  his  alleged  inability  to  grasp  over-all  political 
considerations.  I  do  not  think  any  officer  in  China  is  qualified  to  undertake 
the  assignment.  Chennault  enjoys  the  Generalissimo's  full  confidence,  but  he 
should  not  be  removed  from  his  present  military  position. 

The  assignment  should  go  to  a  man  who  can  (1)  establish  himself  in  Chiang's 
confidence  to  a  degree  that  the  latter  will  accept  his  advice  in  regard  to  political 
as  well  as  military  actions,  (2)  command  all  American  fox'ces  in  China,  and  (3) 
bring  about  full  coordination  between  Chinese  and  American  military  efforts. 
It  is  essential  that  he  command  American  forces  in  China  because,  without  this, 
his  efforts  will  have  no  substance.  He  may  even  be  Stilwell's  deputy  in  China 
with  a  right  to  deal  directly  with  the  White  House  on  political  questions,  or  China 
may  be  separated  from  General  Stilwell's  present  command. 

I  think  that  gives  the  reasons. 

Senator  Ferguson.  Have  you  stated  in  the  record  what  these  po- 
litical considerations  were  about  which  you  are  talking? 

Mr.  Wallace.  So  far  as  the  record  in  1944  is  concerned,  the  closest 
I  came  to  it  is  referring  to  the  vacuum  that  will  exist  in  case  the  deteri- 
oration continues,  the  vacuum  which  I  stated  in  19-44  would  "be  filled 
in  ways  which  you  will  understand."  That  is  so  far  as  the  record  in 
1944. 

Do  you  want  something  in  addition  to  that  ? 

Senator  Ferguson.  Yes ;  I  do  along  this  line.  General  Stilwell  and 
the  Generalissimo  did  not  agree  on  political  questions.  Now,  what 
was  that  political  question  ? 

Mr.  Wallace.  General  Stilwell  believed  that  more  could  be  gotten 
out  of  the  military  effort  against  the  Japanese  if  the  Chinese  Commu- 
nists received  a  considerable  percentage  of  American  arms. 

Senator  Ferguson.  So,  there  was  a  question  there  of  communism? 

Mr.  Wallace.  Chiang  felt  that  was  a  political  matter. 

Mr.  Sour"\vine.  As  you  testified  here,  sir,  in  your  prepared  state- 
ment : 

At  the  same  time  the  Japanese  had  started  a  major  offensive  in  east  China. 
Gen.  Joseph  W.  Stilwell,  the  American  commander  in  the  China-Burma-India 
theater,  was  wholly  preoccupied  with  the  campaign  in  Burma.  The  Chinese 
Armies  being  attacked  by  the  Japanese  had  received  no  American  aid  to 
strengthen  them.  The  Generalissimo  complained  to  me  that  even  the  air  support 
for  them  was  limited  by  General  Stilwell's  policies.  • 

Mr.  Wallace.  Yes. 

Mr.  SouRwiNE.  Did  that  represent  a  direct  complaint  from  Chiang 
to  you? 

Mr.  Wallace.  Yes. 

Senator  Ferguson.  But  there  was  this  question  of  aid  or  no  aid  to 
the  Communists  involved  in  the  removal  of  General  Stilwell? 

Mr.  Wallace.  I  may  say  that  when  a  Vice  President  goes  into 
a  foreign  land  and  Americans  with  different  points  of  view  approach 


1372  INSTITUTE    OF   PACIFIC   RELATIONS 

the  Vice  President  they  are  very  cautious  in  saying  anything  against 
the  opposing  point  of  view,  and  to  the  best  of  my  recollection  no 
one  attached  to  General  Stilwell  said  anything  against  General 
Chennault,  and  nobody  attached  to  General  Chennault  said  any- 
thing against  General  Stilwell.  I  didn't  learn  much  in  China  about 
this  situation.    I  have  learned  it  after  the  fact  for  the  most  part. 

I  got  a  glimmering  of  it  from  Chiang;  but,  so  far  as  the  Ameri- 
cans in  China  were  concerned,  they  were  exceedingly  polite. 

Senator  Ferguson.  Going  back  to  the  political  question 

Mr.  Wallace.  I  got  a  glimmer  of  that  before  I  went  out  there,  I 
may  say,  just  a  glimmer  of  it  from  someone  who  called  on  me.  This 
was  a  gentleman  who  was  associated  with  T.  V.  Soong,  who  tipped 
me  off,  who  knew  a  little  about  it. 

Senator  Ferguson.  But  the  question  was  involved  as  to  the  amount 
of  aid  or  the  nature  of  the  aid  to  be  given  to  the  Communists? 

Mr.  Wallace.  In  retrospect  it  seems  to  me  that  was  the  issue,  but 
I  think  I  will  have  to  say  that  was  chiefly  in  retrospect. 

Senator  Ferguson.  Was  that  question  discussed  with  Mr.  Vincent  ? 
Mr.  Wallace.  No;  I  have  no  recollection  of  it.     As  I  say,  it  is 
in  retrospect  that  I  have  this  knowledge. 

Senator  Ferguson.  Did  you  not  discuss  with  John  Carter  Vin- 
cent the  question  of  why  they  wanted  to  remove  General  Stilwell? 
Mr.  Wallace.  I  have  no  recollection  of  any  such  conversation. 
Senator  Ferguson.  Then,  how  could  he  aid  you  in  the  question 
of  the  removal  of  General  Stilwell  if  you  did  not  tell  him  why  he 
was  to  be  removed  ? 

Mr.  Wallace.  As  I  have  said,  this  whole  thing  came  from  my 
initiative  growing  out  of  my  conversation  with  Chiang  Kai-shek,  and 
I  got  into  action  as  soon  as  I  possibly  could  after  I  left  Chiang 
Kai-shek. 

After  I  had  the  conversation  with  him,  I  left  that  afternoon  for 
Kunming.  The  next  day,  the  25th — I  was  getting  briefed  by  Chen- 
nault on  the  25th — and  then  I  got  into  action  at  the  earliest  possible 
moment,  and  it  wasn't  on  the  basis — frankly,  it  was  on  the  basis 
of  who  Chiang  could  get  along  with  to  do  a  job.  That  was  the 
basis. 

There  was  no  need  for  John  Carter  Vincent — John  Carter  Vin- 
cent may  have  said  something.  I  have  no  recollection  of  what  it 
was,  not  the  slightest. 

Senator  Ferguson.  I  am  trying  to  find  out  what  you  told  Vin- 
cent. Did  you  not  tell  him  the  political  question  involved  between 
Stilwell  and  the  generalissimo  was  that  of  the  furnishing  of  supplies 
or  equipment  to  the  Communists  ? 

Mr.  Wallace.  I  don't  think  I  even  knew  it  at  the  time.    I  am  sure 
I  didn't  know  it. 
Senator  Ferguson.  Your  wire  indicates  a  political  question. 
Mr.  Wallace.  The  Generalissimo  had  said— and  you  will  find  it, 
I  think,  in  the  last  part  of  the  conversations — whether  it  is  in  there 
or  not,  he  had  said  that  he  had  no  political  confidence  in  Stilwell. 

Now,  I  didn't  know  at  that  time,  I  am  sure,  what  was  the  basis 
of  his  lack  of  confidence,  and  so  far  as  I  could  remember  I  did  not 
inquire  as  to  the  basis  of  his  lack  of  confidence.  I  took  the  words 
down.    This  is  what  I  took  down;  this  is  practically  verbatim,  from 


INSTITUTE    OF   PACIFIC   RELATIONS  1373 

what  the  Generalissimo  said  on  the  way  to  the  airport:  "Stilwell 
has  improved  but  has  no  understanding  of  political  matters." 

Senator  Ferguson.  You  did  not  question  him  on  what  those  politi- 
cal matters  were? 

Mr.  Wallace.  No. 

Senator  Ferguson.  So,  really,  Avhat  you  consulted  Mr.  Alsop  and 
Mr.  Vincent  about  is  how  Chiang  Kai-shek  did  not  want  this  man 
as  the  general  in  the  theater,  were  you  to  recommend  his  removal  and 
the  replacement  by  another  general  ? 

Mr.  Wallace.  I  didn't  see  how  the  Generalissimo  and  his  forces- 
could  get  results  in  cooperation  with  the  Americans  unless  he  had 
someone  in  whom  he  had  complete  confidence,  not  only  in  military 
matters  but  in  political  matters. 

Senator  Ferguson.  Now,  when  did  the  name  of  Wedemeyer  come- 
into  the  conversation  or  into  the  analysis? 

Mr.  Wallace.  Obviously,  if  I  was  going  to  recommend  someone^ 
to  carry  out  these  three  specifications,  to  fulfill  them,  I,  knowing  how 
Roosevelt's  mind  worked,  felt  it  essential  to  have  another  name.  That 
is  always  in  govermnent ;  if  you  suggest  dropping  someone,  you  have 
to  have  a  name. 

So,  I  turned  around  to  get  a  name.  Whether  I  had  been  given  that 
name  earlier  or  whether  I  got  it  from  Joe  Alsop,  I  can't  positively 
say,  but  anyhow  the  name  was  there,  and  it  was  the  only  name,  I  may 
say — after  Chennault's  name  was  eliminated  in  the  manner  I  de- 
scribed— it  was  the  only  name  that  any  of  us  could  think  of.  That 
is  the  name  we  put  forward. 

Senator  Ferguson.  What  was  Wedemeyer's  assignment  at  that 
time  ? 

Mr.  Wallace.  Well,  he  had  been  a  deputy  with  Stilwell,  I  believe. 
I  have  forgotten  what  he  was  at  that  specific  moment.  It  can  readily- 
be  ascertained. 

Senator  Ferguson.  Had  you  met  him? 

Mr.  Wallace.  No. 

Senator  Ferguson.  Did  you  know  him  ? 

Mr.  Wallace.  I  have  never  met  him.  I  have  a  close  friend  in  Des- 
Moines  who  went  to  West  Point  with  him,  who  thinks  very  highly 
of  him.    But  I  had  never  met  him. 

Senator  Ferguson.  Was  he  in  the  Chinese  theater  at  that  time? 

Mr.  Wallace.  Yes ;  he  had  been.  I  already  so  stated.  You  see,  I. 
have  already  stated  [reading] : 

Finally,  I  decided  to  suggest  General  Wedemeyer  as  a  man  for  whom  the- 
Generalissimo  had  expressed  admiration,  and  as  a  logical  candidate  in  view, 
of  his  record  and  position  as  deputy  commander  in  the  Southeast  Asia  theater. 

Senator  Ferguson.  Do  you  think  you  raised  the  name  of  Wede- 
meyer first? 

Mr.  Wallace.  I  would  very  much  doubt  it,  because  I  didn't  know 
him. 

Senator  Ferguson.  Do  you  think  Mr.  Alsop  did  ? 

Mr.  Wallace.  It  would  seem  to  me  it  was  either  Mr.  Alsop  or  the 
Generalissimo  or  Mme.  Chiang  or  T.  V.  Soong. 

Senator  Ferguson.  Your  message  on  what  was  said  by  the  General- 
issimo on  this  question  of  Stilwell  when  you  were  riding  in  the  car  and. 
otherwise  did  not  mention  the  Wedemeyer  name  ? 


1374  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Wallace,  No  ;  it  didn't  mention  the  Wedemeyer  name. 

Senator  Ferguson.  Would  that  not  indicate  that  he  did  not  mention 
it? 

Mr.  Wallace.  It  df'^ps  not  necessarily. 

Senator  Ferguson,  l^ou  say  you  were  rather  accurate  in  taking  that 
down  at  that  time  ? 

Mr.  Wallace.  I  said  as  fast  as  the  speed  of  my  pencil  permits.  I 
wouldn't  claim  I  could  take  down  everything  that  was  said  in  a  car 
going  to  the  airport.  I  did  it  as  fast  as  I  could.  That  is,  it  is  impos- 
sible to  swear  absolutely  where  I  got  the  name  Wedemeyer,  but  it 
would  be  my  impression  I  got  it  from  Alsop. 

Senator  Ferguson.  From  Alsop? 

Mr.  Wallace.  Yes ;  but  I  do  not  exclude  the  other  possibility. 

Mr.  SouRWiNE.  There  is  one  thing  that  might  help  on  that,  Mr. 
Wallace,  in  line  with  Senator  Ferguson's  question.  If  you  had  asked 
the  Generalissimo  who  he  would  like  in  place  of  Stilwell,  that  would 
liave  been  something  that  you  would  have  noted  down  because  you 
would  have  had  your  pencil  poised  for  it  when  you  asked  that  question. 

Mr.  WALLACE.  I  am  sure  I  did  not  ask  a  question  of  that  sort  of 
Chiang  Kai-shek  because  I  would  have  looked  upon  it  as  an  exceed- 
ingly improper  question  to  ask  of  the  Generalissimo. 

Senator  Ferguson.  But,  Mr.  Wallace,  you  were  asked  to  remove  a 
man  aud  the  principal  ground  was  that  he  did  not  agree  with  the 
Generalissimo,  and  now  you  are  asking  that  that  man  be  removed  from 
his  high  position,  a  major  general. 

Mr.  Wallace.  I  wasn't  asking  that  he  be  removed  from  his  position 
as  major  general. 

Senator  Ferguson.  Major  general  in  the  theater. 

Mr.  Wallace.  That  he  be  removed  from  his  position  of  running 
things  in  China. 

Senator  Ferguson.  You  are  recommending  a  man  to  fill  a  position 
where  you  did  not  know  whether  or  not  he  was  in  the  good  graces  of 
the  Generalissimo.     Is  that  not  a  fact? 

Mr.  Wallace.  I  state  in  my  cablegram  that  I  am  informed  he  is 
persona  grata  with  the  Generalissimo. 

Senator  Ferguson.  Where  did  you  get  that  information? 

Mr.  Wallace.  This  is  what  it  says  in  the  cable. 

While  T  do  not  feel  competent  to  propose  an  officer  for  the  job,  the  name  of 
General  Wedemeyer  has  been  recommended  to  me  and  I  am  told  that  during  his 
visit  here  he  made  himself  persona  grata  to  Chiang. 

Senator  Ferguson.  That  indicates  it  was  not  your  idea;  somebody 
else  recommended  him? 

Mr.  Wallace.  That  is  right. 

Senator  Ferguson.  Where  did  you  get  the  information  he  was 
friendly  to  the  Generalissimo  ? 

Mr.  Wallace.  I  have  given  you  all  the  information  I  have  and  I 
can't  give  you  any  more. 

Senator  Ferguson.  Was  it  the  same  person  who  recommended  him, 
would  you  say? 

Mr.  Wallace.  Not  necessarily,  but  I  just  simply  don't  have  further 
recollection.    I  can't  say;  I  don't  know. 

Mr.  SouRwiNE.  As  a  matter  of  fact,  the  only  person  whom  Chiang 
indicated  as  perhaps  acceptable  in  place  of  Stilwell  was  General 
Chennault,  was  it  not? 


INSTITUTE    OF   PACIFIC   RELATIONS  1375 

Mr.  Wallace,  You  see,  he  wasn't  asking  for  the  replacement  of 
General  StilwelL    All  these  people  were  exceedingly  proper. 

Mr.  SouRWiNE.  Of  course. 

Mr.  Wallace.  And  he  wasn't  asking  for  it,  but  he  came  as  close  to 
asking  for  it  as  he  could  and  observing  thf  ordinary  diplomatic 
proprieties. 

Mr.  SouRWiNE.  He  made  it  clear  to  you  that  ae  would  like  Stilwell 
replaced?  ^  .       '       .    . 

Mr.  Wallace.  In  interpreting  diplomatic  proprieties,  he  was  ob- 
viously asking  for  the  replacement  of  Stilwell,  but  he  didn't  do  it. 

Mr.  Sourwine.  Did  he  not  also  come  as  close  as  he  could  within  the 
proprieties  to  suggesting  General  Chennault  as  Stilwell's  replace- 
ment? 

Mr.  Wallace.  It  might  be.  As  a  matter  of  fact,  it  would  seem  to  me 
from  my  cable  that  must  have  been  true,  because  the  first  person  that — 
well,  I  mentioned  Chennault  as  the  person  who  would  naturally  come 
to  mind.  I  went  into  the  question  of  Chennault  as  the  man  when  I  got 
there  and,  as  I  say,  Mr.  Alsop  demurred. 

Mr.  Sourwine.  I  realize  that,  but  I  was  asking  my  question  not  on 
that  basis,  which  is  corroborative  evidence,  but  on  the  basis  of  your  own 
statement  which  shows  that  Chiang  spoke  to  you  of  his  distrust,  if  I 
may  use  that  word,  which  is  not  perfectly  descriptive  of  General  Stil- 
well, and  in  the  same  breath,  almost  at  the  same  time,  the  same  occa- 
sion, praised  Chennault.  Since  he  was  not  directly  asking  for  Stil- 
well's removal  or  replacement,  did  you  not  take  it  that  his  expressions 
with  regard  to  Chennault  in  the  same  breath  were  an  indication  he 
would  favor  Chennault  as  the  successor  ? 

Mr.  Wallace.  I  undoubtedly  did  take  it  in  that  sense. 

Senator  Ferguson.  I  just  wanted  to  know  if  the  Generalissimo 
recommended  in  effect  Chennault. 

Mr.  Wallace.  Yes,  I  would  interpret  it  that  way,  that  he  would 
have  been  very  happy  if  Chennault  could  have  been  the  man. 

Senator  Ferguson.  Yes,  and  then  you  were  suggesting  someone 
to  be  removed  because  he  was  not  agreeable  to  the  Generalissimo. 
Then  on  the  say  of  Mr.  Alsop — as  I  understand  it,  that  was  the  only 
objection  made  to  Chennault — you  recommended  another  man  whoui 
you  had  not  discussed  or  do  not  remember  discussing  with  the  Gen- 
eralissimo.   Is  that  a  fair  analysis? 

Mr.  Wallace.  No,  I  don't  think  it  is  an  analysis. 

Senator  Ferguson.  What  is  wrong? 

Mr.  Wallace.  I  make  it  very  clear  in  the  cable  that  Wedemeyer 
was  persona  grata  with  the  Generalissimo.  That  is  a  very  impor- 
tant point  to  observe.  That  is  in  the  cable,  that  he  is  persona  grata 
with  the  Generalissimo. 

Senator  Ferguson.  There  are  only  three  people  you  could  have 
gotten  that  from,  the  Generalissimo,  Mr.  Alsop,  or  Mr.  Vincent. 

Mr.  Wallace.  Or  Mr.  T.  V.  Soong. 

Senator  Ferguson.  T.  V.  Soong.  Now  can  you  recall  where  you 
got  it? 

Mr.  Wallace.  I  think  the  probabilities  would  be  Mr.  Alsop,  but  I 
can't  swear  to  it. 

Senator  Ferguson.  The  same  man  that  recommended  that  they 
do  not  appoint  his  superior  officer,  who  was  Chennault  at  the  time? 

'22848— 52— pt.  5 9 


]^376  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Wallace.  Mr.  Alsop  may  have  talked  to  General  Chennault 
about  it,  but  I  don't  know  anything  about  that. 

Mr.  Sour  WINE.  Could  it  have  been  Mr.  Vincent  who  first  sug- 
gested General  Wedemeyer's  name? 

Mr.  Wallace.  My  recollection  would  be  that  Mr.  Vincent  had 
nothing  to  do  with  that.  My  recollection  is  that  he  did  not  object 
to  anything,  of  Mr.  Wedemeyer's  name. 

Could  I  continue  ?  I  think  you  started  out  by  saying  that  I  would 
not  be  interrupted. 

Mr.  Morris.  I  am  sorry;  I  thought  you  had  finished  the  testi- 
mony. 

Mr.  Wallace.  No,  I  mean  the  reading  of  the  testimony;  Senator 
Ferguson  was  not  here  at  the  time,  and  the  chairman  suggested  that 
I  read  through,  and  have  these  questions  afterward. 

Mr.  SouRwiNE.  You  have  finished,  have  you  not? 

Mr.  Wallace.  That  is  right ;  I  have  finished.    I  beg  your  pardon. 

Senator  Smith.  There  could  be  a  second  edition  of  that. 

Mr.  SouRwiNE.  Mr.  Chairman,  when  the  Senators  are  through 
questioning  for  a  moment,  I  have  a  list  of  questions  that  will  take 
about  10  minutes,  that  I  would  like  to  pursue. 

Mr.  Morris.  May  I  introduce  at  this  time  the  official  Communist 
reactions  to  the  removal  of  Stilwell?  Would  you  consider  that 
pertinent  at  this  time  ? 

Senator  Smith.  Yes;  unless  what  Mr.  Sourwine  had  ought  to 
come  ahead  of  that. 

Mr.  Sourwine.  No;  Mr.  Chairman,  the  offer  of  it  and  the  intro- 
duction makes  no  difference  in  regard  to  my  questions. 

Mr.  Morris.  Will  you  read  the  two  reactions  of  the  Daily  Worker 
to  the  removal  of  Stilwell  ? 

Mr.  Mandel.  The  New  York  Times  registered  the  relieving  of  Stil- 
well on  October  29,  1944.  We  thereupon  looked  through  the  Daily 
Worker  subsequent  to  that.  The  first  reference  to  the  Stilwell  recall 
occurs  in  the  Daily  Worker  on  November  1,  1944,  on  page  8,  in  an 
article  written  by  Joseph  Starobin  who  is  the  leading  writer  of  the 
Daily  Worker  on  foreign  affairs,  in  a  section  headed  "Stilwell's  re- 
call." 

He  says  the  following : 

Stilwell's  recall  is  sensational  because  it  cracks  open  the  dismal  story  of  what 
has  really  been  happening  in  China. 

now,  further,  he  says : 

I  disagree  with  Brooks  Atkinson  of  the  Times  in  only  one  respect. 

on  the  same  page  of  the  Daily  Worker  is  an  article  quoting  Brooks 
Atkinson's  reaction  to  the  removal,  and  Brooks  Atkinson  is  critical 
of  the  removal. 

Now,  this  is  the  statement  of  Starobin  in  reference  to  Brooks  Atkin- 
son's article : 

I  disagree  with  Brooks  Atkinson  of  the  Times  in  only  one  respect.  To  him 
Stilwell's  withdrawal  was  a  mere  negative  action,  leaving  Chungking  to  stew 
in  its  own  mess.  But  I  see  out  of  this  negative  act  something  basic  and  positive 
and  decisive  for  all  of  Asia. 


INSTITUTE    OF   PACIFIC   RELATIONS  1377 

Then  in  the  Daily  Worker,  somewhat  later,  is  an  article  by  Frederic. 
Vanderbilt  Field,  dated  December  2,  1944,  on  page  7,  in  his  Today's 
Guest  column.    He  says : 

At  the  time  of  General  Stilwell's  recall,  a  press  reported  reliably,  in  my  opinion, 
that  the  United  States  had  conveyed  to  the  Chinese  Government  three  condi- 
tions for  effective  coalition  warfare  against  Japan.  These  were,  first,  that  the 
Chinese  high  command  undei'take  a  thorough  reorganization  of  its  armies  in 
order  to  make  them  effective  fighting  units ;  second,  that  the  military  effort  of 
the  Kuomintang  and  Communist-led  armies  be  unified  and,  third,  that  an  Amer- 
ican be  named  commander  in  chief  of  all  allied  forces  in  China.  What  is  the 
status  of  these  conditions — not  ultimate,  for  coalition  warfare?  I  believe  that 
the  first  two  remain  intact  and  that  progress  is  being  made  to  carry  them  out. 
As  to  the  third,  we  know  only  that  there  was  a  breakdown  of  the  particular 
person  nominated  as  commander  in  chief,  General  Stilwell,  and  that  President 
Roosevelt  wisely  and  quickly  compromised  on  that  point.  There  is  no  indication 
that  the  general  proposition  of  an  American  commander  has  been  refused. 

Senator  Smith.  Where  is  that  from  ? 

Mr.  Mandel.  That  is  from  the  Daily  Worker,  December  2,  1944,  by 
Frederick  V.  Field. 

Mr.  Wallace.  Gentlemen,  I  would  like  to  make  this  comment,  that 
any  statement  with  regard  to  Stilwell,  as  far  as  I  am  concerned,  should 
go  back  to  the  period  with  which  I  am  concerned,  which  is  in  June  of 
1944,  and  not  in  October  or  December  of  1944;  that  the  Communist 
line  changes  very  rapidly,  indeed;  that  the  Communist  line — and  I 
gather  this  not  from  the  Daily  Worker,  but  from  a  Washington  paper 
quoting  the  Daily  Worker — the  Communist  line  in  early  1944  was 
strong  praise  of  the  clear-headed  men  of  Wall  Street;  so  the  line 
changed  in  many  very  imusual  ways,  and  I  would  like  to  reserve  the 
right  to  introduce  into  the  record  material  which  my  counsel  has 
found  with  regard  to  what  the  Daily  Worker  was  saying  at  the  period 
under  consideration,  which  is  June  of  1944  and  not  October  of  1944. 

Senator  Ferguson.  What  is  the  date  of  that  ? 

Mr.  Morris.  Those  are  a  few  days  after  the  removal  of  Stilwell. 

Mr.  Wallace.  But  you  see,  I  was  recommending  Stilwell's  removal 
in  June  of  1944,  and  it  actually  took  place,  not  because  of  my  recom- 
mendation, but  for  other  reasons,  in  the  late  fall  of  1944.  I  think,  in 
view  of  these  very  rapid  twists  and  turns  in  the  Communist  line,  that 
it  is  important  at  this  time,  in  view  of  the  fact  that  this  is,  introduced 
into  the  record  that  certain  other  material  be  introduced  into  the  record 
that  my  counsel  has  found  in  the  Daily  Worker,  earlier  in  the  year. 

I  think  it  is  important,  in  view  of  the  many  twists  and  turns  that 
the  Communists  take  to  present  not  only  one  presentation — because 
you  can  get  anything — you  can  get  from  the  Communists  this :  Tliat 
the  Chinese  Communists,  that  is,  you  can  get  from  the  top  command 
in  Russia,  that  the  Chinese  Communists,  at  this  period,  were  brigands, 
robbers  and  Fascists,  and  that  the  only  hope  was  in  Chiang  Kai-shek. 

Now,  the  question  is:  Wlien  was  that  turn?  It  is  an  in-and-out 
proposition  continually,  all  the  time,  and  you  cannot  put  your  finger 
on  them.  You  take  just  merely  one  of  their  presentations,  it  means 
nothing. 

Mr.  Morris.  Mr.  Wallace,  you  must  admit  the  only  time  you  get  a 
comment  on  the  removal  of  Stilwell  was  when  he  was  actually  removed. 


1378  INSTITUTE    OF   PACIFIC    RELATIONS 

•  Mr.  Wallace.  With  regard  to  that,  I  would  simply  say  this :  that 
at  that  time  the  war  was  coming  to  its  concluding  phase,  that  their 
supreme  purpose  was  to  do  everything  they  could  to  save  Russian  lives. 
I  think  that  was  what  animated  the  American  Communists,  was  to 
save  Russian  lives ;  that  in  order  to  save  Russian  lives,  they  would  go 
to  very  extreme  lengths  to  promote  the  maximum  unity  and  they  might 
conceivably  come  out  very  vigorously,  once  it  was  a  fait  accompli,  for 
what  they  previously  opposed  very,  very  strongly — and  we  will  intro- 
duce evidence  as  to  that — they  did  not  want  this,  after  it  was  a  fait 
accompli,  because  they  were  so  eager  to  save  Russian  lives,  they  would 
say  "Yes,  sure,  this  is  fine." 

I  think  you  have  to  keep  this  in  mind  in  analyzing  anything  of  this 
sort.  It  is  the  over-all  picture,  not  isolated  material  which  you  can 
give  out. 

My  attorney  seems  to  be  uneasy. 

Mr.  Ball.  I  was  just  going  to  suggest,  in  commenting  on  Mr. 
Morris'  statement  for  the  committee's  benefit,  that  it  is  possible  to  find 
in  the  Daily  Worker  around  about  the  time  that  Mr.  Wallace  was  in 
China  and  when  these  decisions  were  made,  so  far  as  he  was  concerned, 
comments  with  respect  to  General  Stilwell,  and  I  think  that  the 
suggestion  that  Mr.  Wallace  made  is  a  very  valid  one,  that  there  was 
5  months  or  more  to  intervene  here,  and  it  was  very  possible  for  the 
line  to  change  materially. 

But,  in  any  event,  we  will  submit  the  material. 

Senator  Ferguson.  Do  you  have  it  here  ? 

Mr.  Wallace.  We  do  not  have  it  here,  unfortunately,  but  we  will 
be  glad  to  give  it  to  you. 

Senator  O'Conor.  It  is  a  fact  that  there  were  publications  to  indi- 
cate that  their  policy  was  of  a  different  nature,  as  of  June  or  there- 
abouts ? 

Mr.  Ball.  There  are  publications  which  indicate  a  view  of  General 
Stilwell. 

Mr.  Morris.  That  is  not  the  point.  It  is  General  Stilwell's  removal, 
is  it  not,  that  we  are  talking  about  ? 

Mr.  Ball.  I  do  not  think  you  can  disassociate  those  questions. 

Senator  Ferguson.  Mr.  Ball,  do  you  contend  that  the  Daily 
Worker 

Senator  Smith.  Wait  a  minute.  If  you  are  going  to  examine  Mr. 
Ball,  should  we  not  swear  him  ?  If  his  testimony  is  going  on,  should 
we  not  swear  him  ? 

Senator  Ferguson.  It  is  just  a  statement.  I  do  not  care  if  you  swear 
him. 

Senator  Smith.  All  right ;  you  may  go  ahead. 

Senator  Ferguson.  I  just  want  to  ask  a  question. 

Is  it  your  contention  that  the  Daily  Worker  back  in  June  was  for 
or  against  Stilwell  ? 

Mr.  Ball.  From  the  investigations  that  we  have  made,  sir,  it  would 
indicate  that  they  were  in  favor  of  General  Stilwell.  There  is  a  ref- 
erence— and  I  am  sorry  to  speak  without  the  material  in  front  of  me — 
but  there  is  a  reference  where  they  refer  to  him,  I  believe,  as  "Our 
favorite  American  general."    There  are  one  or  two  other  references. 

Senator  Ferguson.  So  back  in  June  they  were  in  favor  of  General 
Stilwell  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1379 

Mr.  Ball.  That  would  be  the  inference  we  would  draw  from  it. 
But  we  will  submit  the  material  to  the  committee,  and  the  committee 
can  value  it  as  it  sees  fit. 

Mr.  SouRWiNE.  I  have  no  objection  to  its  submission.  But  per- 
haps I  should  state  for  the  record  that  the  question  of  what  the  Com- 
munists thought  of  General  Stilwell  prior  to  the  time  of  Mr.  Wal- 
lace's recommendation  cannot  have  very  much  to  do  with  Mr.  Wal- 
lace's state  of  mind  at  the  time,  since  he  has  testified  that  he  did  not 
know  at  that  time  what  the  Communists  thought  of  General  Stilwell. 

Is  that  not  correct,  Mr.  Wallace  ? 

Mr.  Wallace.  That  is  correct. 

Senator  Ferguson.  I  think  that  is  true,  that  he  did  not  know  what 
they  thought,  at  least,  that  did  not  influence  you  ? 

Mr.  Wallace.  No  ;  that  did  not  have  influence. 

Mr.  Morris.  And  may  I  point  out  that  the  issue  is  the  removal  of 
Stilwell,  and  not  what  the  Communists  thought  of  Stilwell. 

Senator  Smith.  Do  you  have  some  questions  that  you  want  to  ask  ? 

Mr.  SouRwiNE.  If  I  might,  Mr.  Chairman,  I  do  have  some  questions. 

I  would  like  first  to  pick  up  the  thread  and  find  out  what  happened 
to  Mr.  Lattimore.  Where  was  he  when  the  Kuoming  cables  were 
written  ? 

Mr.  Wallace.  I  don't  know  where  he  was.  Maybe  Mr.  Alsop  would 
remember.     But  he  wasn't  with  us. 

Mr.  Sourwine.  We  will  ask  Mr.  Alsop  when  he  comes  on  as  a 
witness. 

Mr.  Wallace.  He  may  remember. 

Mr.  Sourwine.  Do  you  recall  whether  Mr.  Lattimore  absented 
himself  from  your  party  before  you  got  to  Kuoming? 

Mr.  Wallace.  I  really  don't  know  that.  Usually  he  was  with  us, 
but  he  might,  because  of  the  fact  that  the  OWI  had  an  office  in  Chung- 
king.    He  might  have  stayed  over. 

Mr.  Sourwine.  He  did  come  back  with  you  in  the  same  plane, 
though  ? 

Mr.  Wallace.  In  the  same  plane,  yes — and  usually  he  was  with  us. 
But  he  did  have  some  special  duties  in  connection  with  the  OWI  in 
Chungking. 

Mr.  Sourwine.  I  think  you  have  testified  that  in  regard  to  the 
Kuoming  cables,  you  did  not  consult  Mr.  Lattimore  and  you  do  not 
think  he  knew  about  them  ? 

Mr.  Wallace.  That  is  correct. 

Mr.  Sourwine.  That  is  true ;  even  though  Mr.  Lattimore  was  a  man 
who  had  been  praised  to  you  by  the  President,  whose  choice  for  this 
mission  to  accompany  you  on  this  mission,  you  think  was  the  Presi- 
dent's initiation  ? 

Mr.  Wallace.  Yes. 

Mr.  Sourwine.  And  you  did  not  consult  with  him  with  regard  to  it? 

Mr.  Wallace.  No.  The  President's  reference  to  him  was  as  a 
specialist  on  this  northern  border. 

Mr.  Sourwine.  Yes. 

Mr.  Wallace.  And  the  tribes  that  wandered  back  and  forth  along 
that  northern  border  of  China.  I  did  not  look  upon  him  as  a  political 
adviser,  but  merely  as  an  adviser  with  regard  to  that  one  situation. 

Mr.  Sourwine.  You  are  primarily  making  the  point,  are  you  not, 


1380  INSTITUTE    OF   PACIFIC   RELATIONS 

that  Mr,  Biidenz  was  wrong  when  he  stated  or  implied  that  you  were 
influenced  by  Communists  on  your  mission  ? 

Mr.  Wallace.  Yes ;  I  do  so  state. 

Mr.  SouRwiNE.  Now,  there  were  only  two  men  whom  Mr.  Budenz 
mentioned  in  that  connection,  were  there  not  ? 

Mr.  Wallace.  That  is  correct. 

Mr.  SouRwiNE.  Mr.  Lattimore  and  Mr.  Vincent? 

Mr.  Wallace.  That  is  right. 

Mr.  SouRwiNE.  With  regard  to  Mr.  Lattimore,  the  essence  of  your 
contention  is  that  he  could  not  have  influenced  you  because  he  dicl  not 
have  anything  to  do  with  this  matter,  is  that  correct  ? 

Mr.  Wallace.  That  is  correct. 

Mr.  SouRwiNE.  Now,  in  regard  to  Mr.  Vincent,  are  you  willing  to 
let  the  record  stand  as  it  is  on  the  question  of  whether  he  influenced 
you  in  connection  with  these  cables  ? 

Mr.  Wallace.  Yes ;  I  think  it  is  correct  to  let  the  record  stand  as 
it  is. 

Mr.  SouRwiNE.  Do  you  have  any  personal  knowledge  as  to  whether 
Mr.  Vincent  is  or  was  a  Communist  ? 

Mr.  Wallace.  None  whatsoever.  That  is,  as  I  said  in  executive 
hearing,  I  am  not  here  on  behalf  of  any  Person,  any  organization,  any 
party,  or  in  criticism  of  any  person,  any  party,  or  any  organization. 
I  am  very  glad  to  have  no  connection  with  any  of  them. 

Mr.  Sourwine.  I  have  a  few  questions  which  leave  that  point,  Mr. 
Chairman,  if  I  may  be  indulged  for  a  moment. 

Just  running  through  this  statement  as  it  stands,  first,  Mr.  Wallace, 
who,  if  anyone,  helped  you  in  the  preparation  of  this  statement  that 
we  have  here  ? 

Mr.  Wallace.  This  here  ? 

Mr.  Sourwine.  Yes ;  the  one  you  offered  and  read  today. 

Mr.  Wallace.  Well,  I  typewrote  out  the  first  draft  of  this  myself 
up  at  the  farm,  and  then  I  came  down  and  yesterday  went  over  it  with 
Mr.  Ball,  and  we  spent,  I  would  say,  the  greater  part  of  yesterday 
working  on  it.  I  had,  in  my  particular  draft  which  I  had  made  at 
the  farm,  I  had  not  dealt  with  the  material  that  was  in  the  release  of 
the  other  day,  and  so  Mr.  Ball  and  I  addressed  ourselves  to  the  prob- 
lem of  combining  the  two,  because  we  thought  there  should  be  intro- 
duced into  the  record  only  one  statement,  and  not  an  effort  to  intro- 
duce the  other  statement  which  had  been  released  to  the  press.  That 
is  the  account  of  how  this  was  formed. 

Mr.  Sourwine.  Did  Mr.  Alsop  assist  at  all  in  the  preparation  of 
this  statement  ? 

Mr.  Wallace.  No  ;  in  no  way  whatsoever. 

Mr,  Sourwine.  Did  he  see  it  before  it  was  released  ? 

Mr.  Wallace.  Not  so  far  as  I  know. 

Mr.  Sourwine.  In  the  previous  statement  that  you  had  with  you, 
which  was  denied  admission,  did  Mr.  Alsop  assist  in  the  preparation 
of  that  ? 

Mr.  Wallace.  I  don't  know  whether  he  did  or  not.     Do  you  know  ? 

Mr,  Ball.  No  ;  we  consulted  him  on  questions  of  recollection.  You 
consulted  him  and  talked  to  him. 

Mr.  Wallace.  Well,  now,  I  don't  Imow  whether  it  was  on  this 
occasion  or  not.  I  remember  I  was  much  interested  at  one  time  or 
another  with  Mr.  Alsop  in  finding  out  just  what  became  of  these 


INSTITUTE    OF   PACIFIC   RELATIONS  1381 

Chinese  generals,  and  this  banker,  and  so  on.  I  really  had  quite  a 
curiosity  about  that,  and  I  wanted  to  look  into  that. 

Mr,  SouKwiNE.  I  wondered  if  you  had  asked  Mr.  Alsop's  advice 
about  the  release,  or  about  what  should  go  into  the  release,  or  about  the 
timing  of  the  release,  or  anything  of  that  nature? 

Mr.  Wallace.  I  don't  think  so. 

Mr.  Ball.  No  ;   I  will  take  the  responsibility  for  that. 

Mr.  SouRwiNE.  Did  you  consult  in  connection  with  either  of  these 
two  releases,  or  assist  in  connection  with  either  of  these  two  releases, 
assisted  by  anyone  connected  with  the  Institute  of  Pacific  Relations, 
so  far  as  you  know  ? 

Mr.  Wallace.  No. 

Mr.  SouRwiNE.  Jumping  to  another  point,  you  made  the  comment 
here  a  moment  ago,  some  little  time  ago,  when  you  were  reading  from 
page  7  of  your  statement,  after  you  had  read  this  sentence : 

As  the  OWI  representative  on  the  mission,  Mr.  Lattimore  was  expected  to 
assist  our  group  in  its  relations  with  the  press. 

you  had  made  the  comment  out  of  context  of  the  statement :  "that  was 
in  China,  not  in  Russia." 

Mr.  Wallace.  Yes. 

Mr.  SouRwiNE.  Now,  why  did  you  make  that  distinction? 

Mr.  Wallace.  Just  simply  because  there  wasn't  any  press  in  Russia. 

Mr.  SouRWiNE.  They  did  not  have  newspapers? 

Mr.  Wallace.  Well,  they  had  newspapers,  but  I  mean  it  is  sense- 
less to  think  that  anybody  could  contact  the  press  in  Russia,  in  the 
sense  in  which  we  think  of  press  contacts  in  the  United  States.  In 
China  it  was  another  matter. 

Mr.  SouRwiNE.  The  press  relations  that  Mr.  Lattimore  was  han- 
dling, then,  were  with  the  local  papers,  and  not  with  the  papers  back 
in  the  United  States? 

Mr.  Wallace.  It  was  working  through  the  local  OWI  office,  as  I 
remember  it,  with  the  Chinese  press. 

Mr.  SouRwiNE.  The  OWI  did  not  have  any  office  in  Russia,  did 
they? 

Mr.  Wallace.  I  would  be  quite  sure  they  did  not. 

Mr.  SouRwiNE.  Do  you  know  whether  or  not  Mr.  Lattimore  spoke 
Russian  ? 

Mr.  Wallace.  As  I  testified  in  executive  session,  I  think  he  spoke 
some,  not  much.  I  would  call  it  archeological  Russian.  In  one  case, 
of  rather  stumbling  along  with  Russian,  it  was  with  the  director  of 
an  archeological  museum,  at  Minisinsk,  and  I  think  what  he  did  was 
to  take  a  scientific  word  and  put  a  "ski"  on  the  end  of  it.  But  in  the 
scientific  realm  it  is  quite  possible,  because  there  is  a  sort  of  interna- 
tional language  there,  if  you  have  just  a  little  fragment  of  informa- 
tion to  get  along.  I  don't  know  how  well  he  spoke  it,  but  that  is  the 
one  time  when  I  remember  that  he  seemed  to  get  something  out  of 
an  old  lady  who  was  directing  the  museum. 

Mr.  SouRwiNE.  You  do  regard  Mr.  Lattimore  as  a  scholar? 

Mr.  Wallace.  I  do  regard  him  as  a  scholar,  and  it  may  be  that  he 
knows  Russian  better  than  I  think. 

Mr.  SouRwiNE.  Your  statement  about  taking  words  and  putting  a 
"ski"  on  the  end  was  a  jest? 

Mr.  Wallace.  No  ;  I  mean  to  say  that  when  you  are  dealing  with 
scientific  matters  it  is  easier  to  get  along  than  you  realize. 


1382  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SoTJRWiNE.  But  Mr.  Lattimore  would  probably  have  known  the 
proper  archeological  terms  for  anything  that  he  wanted  to  discuss? 

Mr.  Wallace.  I  don't  know  as  to  that.  But,  at  any  rate,  he  seemed 
to  get  along  with  this  old  lady,  after  a  fashion,  and  to  tell  us  that  this 
is  from  the  Bronze  Age,  and  so  on. 

Mr.  SouRwiNE.  In  your  statment  on  page  10  you  have  this  sentence 
at  the  top  of  the  page : 

With  these  thoughts  in  mind,  I  went  on  to  Kuoming,  where  John  Carter  Vincent 
and  I  were  the  guests  of  General  Chennault. 

Where  did  you  go  to  there  from  ? 

Mr.  Wallace.  From  Chungking.  As  I  remember,  we  left  there  in 
the  early  afternoon  and  got  there  some  time  that  same  day. 

Mr.  SouRwiNE.  You  mentioned  that  John  Carter  Vincent  and  you 
"were  the  guests  of  General  Chennault."  That  seems  to  imply  that 
Mr.  Lattimore  was  not  with  you. 

Mr.  Wallace.  I  just  don't  know.  Mr.  Alsop  may  have  recollection 
on  that  point.  I  just  don't  know.  It  is  just  simply  because  of  the  fact 
that  it  was  John  Carter  Vincent  and  I  who  had  this  conference  with 
Alsop,  and  I  don't  know  what  happened  to  Mr.  Lattimore  at  that  time, 

Mr.  Sourwine.  On  page  14  of  your  memorandum,  sir,  near  the  top 
of  the  page  again,  by  coincidence,  you  say — 

The  best  way  to  insure  its  ultimate  collapse  and  a  Communist  take-over    *    *    ♦ 

that  is,  the  Chiang  regime — ■ 

best  way  to  insure  its  ultimate  collapse  and  a  Communist  take-over,  was  to  let 
it  continue  in  its  state  of  physical  and  spiritual  anemia. 

Now,  by  "physical  anemia"  I  take  it  you  mean  lack  of  material,  lack 
of  supplies,  and  that  type  of  thing? 

Mr.  Wallace.  Yes. 

Mr.  Sourwine.  And  by  "spiritual  anemia"  what  do  you  mean? 

Mr.  Wallace.  I  mean  that  as  a  result  of  this  very  great  lack  of 
supplies,  as  a  result  of  their  weak  budgetary  and  currency  situation, 
there  was  an  enormous  inflation  which  so  deprived  the  ordinary  leader- 
ship in  a  local  way  of  the  means  of  life,  that  they  had  lost,  that  they 
had  become  so  preoccupied  with  the  terrific  problem  of  keeping  alive 
that  they  were  begining  to  lose  their  will  to  fight.  They  had  been  in 
the  war  for  7  years,  and  the  situation  which  these  people,  who  ordi- 
narily would  be  leading  in  the  local  community,  had  become  so  im- 
poverished that  the  spiritual  lifeblood  had  been  veritably  sucked  out 
of  China. 

Mr.  Sourwine.  You  mean  the  whole  thing,  then,  reverts  back  pri- 
marily to  that  lack  of  physical  material  ? 

Mr.  Wallace.  There  is  always  a  relation  between  the  spiritual 
and  the  physical  which  you  cannot  separate. 

Mr.  Sourwine  (reading)  : 

The  hest  way  to  insure  its  ultimate  collapse  and  a  Communist  take-over,  was 
to  let  it  continue  in  its  state  of  physical  and  spiritual  anemia. 

It  was  in  recognition  of  this  conviction,  which  I  shared  with  almost  anyone 
who  knew  anything  about  China  at  that  time — 

and  so  forth. 

So  I  take  it  that  it  is  a  fair  conclusion  that  it  was  your  feeling  that 
it  was  true  that  the  best  way  to  insure  the  collapse  of  the  Chiang 
regime  was  to  let  that  physical  and  spiritual  anemia  continue? 

Mr.  Wallace.  Yes. 


INSTITUTE    OF   PACIFIC   RELATIONS  1383 

Mr.  SouRwiNE.  Now,  what  was  there  in  your  recommendations, 
in  your  July  10  report,  which  was  designed  to  alleviate  that  physical 
anemia  ? 

Mr.  Wallace.  I  don't  remember.  Have  you  got  the  July  10  re- 
port?    I  would  say  the  chief  thing  probably  had  to  do  with 

Mr.  SouRWTNE.  Were  you  recommending  additional  supplies  to  be 
furnished  by  us  to  the  Chiang  regime  ? 

Mr.  Wallace.  You  might  look  over  there  and  see  whether  it  is  in 
that  report. 

I  can  say  this :  that  I  had,  before  I  went  over  there,  and  I  am  not 
sure  whether  I  was  able  to  follow  this  up  afterward — I  know  I  was 
able  to,  to  some  extent,  later  on — I  had  gone  into  the  question  of  sub- 
stituting C-54:'s  for  C-4:7's,  because  I  had  discovered  that  one  C-54 
would  carry  seven  times  as  much  goods  as  one  C-47. 

We  had  been  using  C-47's  over  the  hump,  and  I  had  been  informed 
that  1  month's  output  of  C-54's  in  the  United  States  would  carry  as 
much  in  the  way  of  goods  as  the  entire  Burma  Road. 

Mr.  SouRwiNE.  Pardon  my  interruption,  sir ;  but,  if  you  please 

Mr.  Wallace.  And  I  had  pushed  on  that  particular  front.  Now, 
as  I  say,  I  don't  remember  to  what  extent  I  had  pushed  before  I  went 
over,  or  to  what  extent  afterward.  Is  there  anything  in  here  on 
that? 

Mr.  Ball.  Yes. 

Mr.  SouRwiNE.  Please. 

Mr.  Wallace.  Yes,  sir ;  go  ahead. 

Mr.  'SouRWiNE.  Mr.  Wallace,  if  you  do  not  mind,  instead  of  asking 
Mr.  Ball  if  there  is  anything  in  it,  we  can  refer  to  this — I  want  to 
make  this  clear,  sir.  I  do  not  mean  to  contend  about  anything  that 
you  may  have  done  before,  but  I  am  particularly  interested  in  this 
particular  time. 

You  have  a  paragraph  here — it  is  your  own  voluntary  statement — 
you  have  said  that  you  felt  that  the  best  way  to  insure  the  ultimate 
collapse  and  a  Communist  take-over  of  the  Chiang  regime  was  to  let  it 
continue  in  its  then — ^you  have  said — 

it  was  in  recognition  of  this  conviction,  which  I  shared  with  almost  anyone  who 
knew  anything  about  China  at  that  time,  whether  American  or  Chinese,  that  I 
set  forth  at  the  end  of  my  July  10  report  a  "possible  policy  line  relative  to 
liberal  elements  in  China." 

I  am  trying  to  find  out  what  there  was  in  that  possible  policy  line 
which  was  a  recommendation  by  you  for  the  alleviation  of  the  Chiang 
regime. 

Mr.  Wallace.  Just  a  little  earlier — I  would  call  attention  to  this 
paragraph,  that  we  should  bear  constantly  in  mind  that  the  Chinese, 
a  nonfighting  people,  have  resisted  the  Japanese  for  7  years ;  economic 
hardship  and  uninspiring  leadership  have  introduced  something  akin 
to  spiritual  and  physical  anemia. 

TTiere  is  a  widespread  popular  dislike  for  the  Kuomintang  Govern- 
ment. There  is  also  strong  popular  dislike  for  the  Japanese  and  the 
confidence  in  victory. 

Mr.  SouRWiNE.  Do  you  think  that  answers  my  question  ? 

Mr.  Wallace.  It  didn't  give  a  specific  program  with  regard  to 
C-54:'s. 

Mr.  Sourwine.  Did  you  hear  the  question,  sir  ? 


1384  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Wallace.  Yes;  I  heard  the  question.  But  this  is,  really,  in 
the  main,  in  the  nature  of  a  travelogue,  and  a  suggestion  for  political 
action,  and  not  a  detailed — this  particular  report  is  not  a  detailed 
discussion  of  economic  methods  of  alleviating  the  difficulty  in  China. 
I  am  not  saying  that  this  is  the  proper  place  to  engage  in  that  dis- 
cussion. It  was  something  that  was  close  to  my  heart  and  on  which  I 
did  take  action.  But  it  is  not  in  this  report  to  any  greater  degree 
than  merely  the  recognition  that  there  was  an  economic  problem. 

Mr.  SouRWiNE.  Mr.  Wallace,  I  have  not  picked  out  a  portion  of 
your  report  at  random  and  asked  j^ou  what  was  inckided  in  it.  I  am 
asking  you  about  the  portion  of  the  report  in  which  you,  yourself,  in 
your  own  statement,  have  directed  attention,  in  connection  with  your 
statement,  about  what  was  the  best  way  to  insure  the  collapse  of  the 
Chiang  regime. 

Mr.  Wallace.  I  may  say  that  I  am  very  proud  of  this  report. 

Mr.  SouRwiNE.  I  am  not  attacking  the  report,  sir.  I  am  asking 
you,  since  you  have  said  that  it  was  in  recognition  of  your  conviction 
that  the  best  way  to  insure  the  collapse  of  the  Chiang  regime  was  to 
let  it  continue  in  its  then  present  state  of  physical  and  spiritual 
anemia — in  view  of  that  fact,  and  your  statement  that  it  was  in  rec- 
ognition of  that  conviction  that  you  set  forth  at  the  end  of  your  July 
10  report  a  possible  policy  line  relative  to  liberal  elements  in  China, 
what  there  was  in  that  policy  line,  if  anything,  that  was  designed  to 
relieve  or  alleviate  the  state  of  physical  anemia  ? 

Mr.  Wallace.  All  right.     Let's  read  over  this  possible  policy  line : 

Our  policy,  at  the  present  time,  should  not  be  limited  to  support  of  the  Govern- 
ment. It  is  essential  to  remember  that  we  have,  in  fact,  not  simply  been  sup- 
porting Chiang,  but  a  coalition  headed  by  Chiang 

Mr.  SouRWiNE.  From  what  are  you  reading  ? 
Mr.  Wallace.  Possible  policy  line  relative  to- 


Mr.  Sourwine.  From  the  end  of  your  July  10  report  ? 
Mr.  Wallace  (reading)  : 

but  a  coalition  headed  by  Chiang  and  supported  by  the  landlords,  the  war- 
lord group  most  closely  associated  with  landlords,  and  the  Chiang  group  of  bank- 
ers. We  can,  as  an  alternative,  support  those  elements  which  are  capable  of 
supporting  a  new  coalition,  better  able  to  carry  the  war  to  a  conclusion,  and 
better  qualified  for  the  postwar  needs  of  China.  Such  a  coalition  was  to  be  of 
progressive  banking  and  commercial  leaders  of  the  K.  P.  Chen  type,  with  a 
competent  understanding,  both  of  their  own  country  and  of  the  contemporary 
Western  World ;  the  large  group  of  western-trained  men  whose  outlook  is  not 
limited  to  perpetuation  of  the  old  landlord-dominated  rural  society  of  China ; 
and  the  considerable  group  of  generals  and  other  officers  who  are  neither  sub- 
servient to  the  landlords  nor  afraid  of  the  peasantry. 

The  emergence  of  such  a  coalition  could  be  aided  by  the  manner  of  allotting 
both  military  aid  and  economic  aid  and  by  the  formulation  and  statement 
of  American  political  aims  and  sympathies,  both  in  China  and  in  regions 
adjacent  to  China.  The  future  of  Chiang  would  then  be  determined  by  Chiang 
himself.  If  he  retains  the  political  sensitivity  and  the  ability  to  call  the  turn 
which  originally  brought  him  to  power,  he  will  swing  over  to  the  new  coalition 
and  head  it.  If  not,  the  new  coalition,  in  the  natural  course  of  events,  will 
produce  its  own  leader. 

This  statement  is  a  very  clear  cut  answer  to  the  question  that  you  raise. 
While  the  point  I  was  making  about  getting  more  C-54's  on  the  run 
over  the  Hump,  it  would  have  been  of  some  help,  it  would  have  been 
infinitesimal  compared  to  the  economic  help  that  would  have  flowed 
from  this  recommendation  here. 


INSTITUTE    OF   PACIFIC   RELATIONS  1385 

]\fr.  SoTiRwiNE.  That  is  v:\mt  I  wisli  you  would  explain,  the  eco- 
nomic help  that  would  have  flowed  from  this  recommenation. 

Mr.  Wallace,  Yes.  As  a  matter  of  fact,  this  was  the  only  way 
in  which  you  could  get  substantial  economic  help,  because,  and  I 
call  your  attention — 

the  emergence  of  such  a  coalition  could  be  aided  by  the  manner  of  allotting 
both  military  aid  and  economic  aid  and  by  the  formulation  and  statement  of 
American  political  aims  and  sympathies,  both  in  China  and  the  regions  adjacent 
to  China. 

Mr.  SoTTRWiNE.  That  is  a  statement.  If  you  please,  sir,  at  that 
point — is  that  not  a  statement  that  the  method  of  allotting  physical 
aid  could  help  to  bring  about  what  you  call  a  coalition  government, 
a  new  group  of  some  sort  ? 

Mr.  Wallace.  That  is  exactly  the  point  that  I  am  making. 

Mr.  SouRwiNE.  That  is  not  the  reverse,  is  it?     That  is  not  the  • 
statement  that  the  new  group  will  bring  about  more  aid  to  China,  is  it  ? 

Mr.  Wallace.  Yes;  definitely  so,  sir.  And  this  I  brought  out  in 
some  detail  in  executive  session.  I  would  call  your  attention  to  that 
fact,  that  it  would  operate  in  this  manner : 

T.  V.  Soong  apparently  has  lost  out  with  Chiang  and  found  himself 
in  a  very  perilous  position  in  late  1943  and  early  1944,  because  he  had 
been  the  spokesman  of  the  Kuomingtang  in  the  United  tStates,  and  v 
Chiang  thought  that  he  had  not  been  able  to  bring  the  help  to  China 
that  he  should  have  brought  to  China ;  that  America  had  not  brou<Tht 
the  help  to  China,  and,  therefore,  T.  V.  Soong  was  retired,  practically, 
from  circulation  and  w^as  in  a  very  perilous  situation,  indeed,  so 
Ambassador  Gauss  told  me. 

So  my  proposition,  as  contained  in  the  paragraph  I  have  read, 
clearly  amounts  to  this :  that  the  United  States,  in  allotting  the  aid, 
should  build  up  the  American-minded  Chinese,  the  Western  Chinese, 
so  that  we  would  raise,  in  the  estimation  of  Chiang,  and,  simultaneous- 
ly, you  would  have  China  getting  goods,  but  getting  goods  in  a  way 
that  would  strengthen  the  pro-American  element  in  the  Kuomintang. 
That  enlightened  element  was  the  only  element  in  the  Kuomintang 
that  had  the  knowledge  of  modern  industrial  and  financial  forces, 
as  they  operate  in  the  economic  field,  to  solve  the  very  serious  problem 
in  which  the  Generalissimo  found  himself. 

I  say  that  this  is  100  to  1  compared  with  my  other  recommendation 
with  regard  to  C-54''s,  important  as  that  was. 

Mr.  SouRwiNE.  Do  you  think  that  this  that  you  have  read  here, 
and  which  you  are  now  discussing,  is  a  recommendation  for  additional 
aid  to  the  Chiang  regime,  additional  material  aid? 

Mr.  Wallace.  I  do,  sir. 

Mr.  SoTJRWiNE.  You  did  so  intend  it  ? 

Mr.  Wallace.  Yes,  sir. 

Mr.  SouRWiNE.  Are  you  stating  that  you  did  not  intend  this  as  a 
recommendation  or  diversion  of  some  of  the  aid  that  otherwise  would 
go  to  Chiang  to  some  new  group  ? 

Mr.  Wallace.  No;  this  was  to  be  Chiang  heading  the  show,  but 
a  pro-American  show,  and  not  an  anti-American  show. 

Mr.  SoTJRWiNE.  Did  you  intend  that  some  of  the  aid  should  be  put 
at  the  disposal  of  Soong,  so  as  to  build  him  up  ? 

Mr.  Wallace.  I  am  just  using  that  as  an  illustration. 


1386  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SouRWiNB.  Did  you  so  intend  ? 

Mr.  Wallace.  I  would  say  lie  would  be  No.  1  on  the  list;   yes. 

Mr.  SouRwiNE.  How  would  you  have  put  the  aid  at  his  disposal? 
Did  you  have  any  thought  about  that? 

Mr.  Wallace.  It  is  one  of  those  things  that  happened  all  the  time 
in  China,  that  that  was  the  way  you  operated.  That  is  all  there  is  to 
that. 

Mr.  SouKwiNE.  I  am  not  familiar  with  how  things  operate  in  China ; 
that  is  why  I  am  asking  you,  sir. 

Mr.  Wallace.  I  am  not  an  expert  in  the  field,  but  it  is  quite  a 
system  over  there. 

Mr.  SouRwiNE.  You  did  contemplate  that  the  aid  would  be  put  at 
the  disposal  of  Soong,  and  I  presume  others  ? 

Mr.  Wallace.  I  would  say  pro-American  Chinese. 

Mr.  SouEWiNE.  That  is  a  label. 

Mr.  Wallace.  In  the  Kuomintang  group. 

Mr.  Sourwine.  Yes ;  they  were  people  who  were  not  then  in  favor 
with  Chiang? 

Mr.  Wallace.  They  had  fallen  out  of  favor  in  late  1943  and  early 
1944. 

Mr.  Souewine,  They  were  not  in  favor  ? 

Mr.  Wallace.  Not  in  favor. 

Mr.  Sourwine.  You  were  going  to  place  at  their  disposal  some  of 
the  aid  available  from  America,  instead  of  giving  it  to  Chiang  ? 

Mr.  Wallace.  Is  it  the  kind  of  thing  that  the  State  Department 
does  all  the  time. 

Mr.  Sourwine.  Leaving  that  aside,  it  was  the  thing  that  you  then 
were  recommending? 

Mr.  Wallace.  Absolutely. 

Mr.  Sourwine.  You  were  going  to  divert  a  portion  that  would 
otherwise  have  gone  to  Chiang  ? 

Mr.  Wallace.  It  is  not  "otherwise,"  it  is  the  way  the  thing  goes  all 
the  time.  People  under  Chiang  operated  under  this  all  the  time.  The 
question  is,  Who  they  would  be. 

Mr.  Sourwine.  You  were  going  to  raise  a  group  within  the 
Kuomintang,  who  were  at  that  time  out  of  favor  with  Chiang  ? 

Mr.  Wallace.  That  is  right ;  a  more  liberal  group. 

Mr.  Sourwine.  Or  were  placing  available  to  them,  or  at  their  elec- 
tion, a  portion  of  the  aid  that  America  could  furnish? 

Mr.  Wallace.  That  is  my  proposal ;  yes,  sir. 

Mr.  Sourwine.  And  are  you  testifying  that  it  is  your  belief  now, 
and  it  was  your  belief  then,  that  was  a  recommendation  for  increas- 
ing the  physical  aid  to  China,  the  Chiang  regime  ? 

Mr.  Wallace.  Yes;  that  is  my  contention,  and  if  any  real  help 
was  to  be  brought  to  China,  it  was  very  vital  that  that  be  done. 

Mr.  Sourwine.  And  that  is  the  only  recommendation  in  here  ? 

Mr,  Wallace.  It  is  the  all-important  recommendation. 

Mr.  Sourwine.  That  is  the  only  recommendation  in  this  portion 
that  you  have  read  here,  this  possible  policy  line,  which  you  point  to 
as  a  recommendation  for  alleviating  the  physical  anemia  of  the  Chiang 
regime? 

Mr.  Wallace.  That  is  the  all-important  recommendation,  sir. 

Senator  Smith.  Is  that  all  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1387 

Mr.  SouR-vviNE.  That  is  all  on  that  point.  I  have  one  or  two  more 
questions. 

Have  you  testified,  Mr.  Wallace,  that  Mr.  Alsop  wanted  you  again 
and  again  to  print  the  Kuoming  cables,  or  to  release  them  ? 

Mr.  Wallace.  I  don't  know  whether  I  testified  that  he  did.  I  don't 
know  whether  "again  and  again"  is  specifically  the  right  phrase,  but 
several  times  he  wanted  me  to  release  them. 

Mr.  SouRwiNE.  Did  the  question  of  releasing  them  on  those  occa- 
sions— was  it  raised  by  him  or  by  you  ? 

Mr.  Wallace.  Well,  in  the  first  place,  when  I  first  got  in  touch — 
when  Kohlberg  wrote  me,  I  think  at  this  time  I  phoned  Mr.  Alsop 
and  he  said,  "Well,  why  don't  you  release  the  whole  thing?" 

Mr.  SouRWiNE.  Was  that  the  first  time  Mr.  Alsop  had  asked  you 
to  release  them  ? 

Mr.  Wallace.  Yes ;  that  is  correct — in  1950. 

Mr.  Sour  WINE.  And  subsequently,  on  other  occasions,  when  he 
asked  you  to  release  them,  had  you  called  him  to  ask  him  about  it  as 
you  did  in  the  first  case,  or  did* he  call  you  or  bring  it  up  with  you? 

Mr.  Wallace.  The  next  time — the  first  time,  Mr.  Alsop  had  been 
in  touch  with  me,  or  I  had  been  in  touch  with  him  since  I  left  Wash- 
ington in  1946,  was  in  1950,  on  the  Kohlberg  thing.  Then,  did  he 
call  me  or  did  I  call  him?  I  think  he  called  me.  Frankly,  I  have 
been  testifying  so  long  that  I  can't  be  sure.  I  just  can't  be  sure.  I 
mean,  it  is  the  kind  of  thing  that,  if  I  had  some  time  off,  I  could  verify 
it.  But  whether  I  called  him  or  he  called  me,  right  at  the  moment 
I  am  just 

Mr.  SouRwiNE.  But  he  did  several  times  express  the  wish  ?_ 

Mr.  Wallace.  He  expressed  the  wish,  and  in  the  first  instance  I 
passed  on  to  him  very  much  the  same  material  I  had  passed  on  to 
Kohlberg.  I  had  not,  I  believe,  in  1950,  passed  on  to  him  the  material 
that  I  passed  on  to  Kohlberg.  He  knew  that  I  had  done  that  with 
Kohlberg,  and  so  I  read  to  him  over  the  telephone.  He  must  have 
phoned  me  some  time  in  early  September  asking  if  I  could  give  him 
that  letter,  and  I  read  it  to  him  over  the  phone.  I  can  testify  under 
oath  to  this.  I  think  that  on  that  occasion  tlie  initiative  did  come 
from  him. 

Mr.  Sourwine.  Now,  Mr.  Wallace,  when  you  prepared  the  state- 
ment which  you  used  in  connection  with  the  release  of  the  Kuoming 
cables — that  is,  the  statement  that  you  sent  to  the  White  House — did 
Mr.  Alsop  assist  you  in  connection  with  that? 

Mr.  Wallace.  Yes ;  to  a  degree  he  did.  I  had  especially  wanted  to 
get  in  touch  with  Mr.  Alsop  with  regard  to  the  final  outcome  of  some 
of  the  generals,  how  they  had  finally  turned  out.  That  was  my  big 
object  in  seeing  Mr.  Alsop.  I  saw  Mr.  Alsop  on  this  occasion,  and  I 
may  say  that  Mr.  Alsop  did  not  have  the  slightest  notion  that  I  was 
going  to  write  it  to  the  President. 

Wliat  Mr.  Alsop  was  advocating  was  a  press  release,  I  believe. 

Mr.  Sourwine.  Well,  he  was  treating  it  as  though  it  was  not  a  re- 
stricted document,  but  one  that  you  had  a  right  to  release  directly. 

Mr.  Wallace.  Yes.  Of  course,  in  view  of  the  lapse  of  time,  I  don't 
think  there  was  any  breaking  of  any  code,  and  that  is  the  only  thing 
that  the  military  was  concerned  with,  I  think. 

Mr.  Sourwine.  You  felt  that  the  lapse  of  time  gave  you  the  right  to 
declassify  it  ? 


1388  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Wallace.  Yes.     I  felt  that  I  would  get  in  no  trouble  with  it. 

Mr.  SouRWiNE.  Go  ahead,  sir. 

Mr.  Wallace.  I  wanted  to,  if  there  was  to  be  a  press  release,  I 
wanted  to  get  the  benefit  of  Mr.  Alsop's  recollection,  and  again  it  was 
very  much  the  same  situation  at  Kuoming. 

Mr.  Alsop  had  a  typewriter,  and  batting  back  and  forth,  with  my 
taking  the  initiative 

Mr.  SouRwiNE.  Did  you  come  down  to  where  he  lives,  or  did  he  come 
up  to  where  you  live? 

Mr.  Wallace.  No  ;  I  came  into  New  York.  I  met  with  him  in  some 
hotel  where  he  had  a  room.     I  don't  remember  the  name  of  the  hotel. 

Mr.  SouRwiNE.  Wlio  suggested  the  meeting  and  that  you  come  up — 
you  or  he  ? 

Mr.  Wallace.  Well,  I  think  that  my  guess  is  that  he  suggested  it, 
but  I  wouldn't  be  sure.  It  might  have  been  me,  because  I  was  very 
much  interested  in  how  these  various  names  turned  out.  I  didn't  know. 
1  had  no  idea,  because  I  had  not  maintained,  you  might  say,  a  close, 
intimate  knowledge  of  China  and  the  personalities  of  China  after  1944. 
I  had  no  idea  how  these  names  had  turned  out,  and  I  know  that  Joe  had 
maintained  a  very  close  and  intimate  relationship,  and  I  very  much 
wanted  to  talk  with  him  about  it.  So  it  might  have  been  my  initiative. 
I  might  say  at  the  moment  I  just  can't  say. 

Mr.  SouRWiNE.  Have  you  discussed 

Mr.  Wallace.  That  is  my  interest  with  regard  to  these  names. 

Mr.  Sourwine.  Mr.  Alsop,  if  I  understand  you  correctly,  initially 
was  thinking  in  terms  of  a  press  release,  and  it  was  your  idea  that  it 
should  be  sent  to  the  Wliite  House  ? 

Mr.  Wallace.  It  was  completely  and  exclusively  my  idea  that  it 
be  sent  to  the  White  House.  I  felt  that  that  was  the  proper  thing,  that 
the  reports  had  been  submitted  to  the  White  House. 

Mr.  Sourwine.  When  did  he  know  that  it  was  to  go  to  the  Wliite 
House — after  he  got  to  New  York  or  before  he  got  to  New  York? 

Mr.  Wallace.  He  very  much  wanted  to  know  what  I  was  going  to 
do.  I  may  say  that  the  final  draft  I  typewrote  myself,  to  President 
Truman,  and  I  typewrote  it  several  times,  I  played  with  ideas  of 
sending  it  elsewhere  but  finally  decided  on  that.  Joe  did  not  know 
that  I  had  decided  on  that,  and  he  had  asked  me  to  phone  him  as  to 
when  I  was  going  to  release  it. 

So  I  phoned  him  and  told  him  that  I  was  going  to  send  it  to  the 
President. 

Mr.  Sourwine.  In  other  words,  what  you  had  worked  out  with  him, 
and  what  he  had  typed  out  at  your  dictation  in  this  hotel  room  in 
New  York  was  for  the  basis  of  a  press  release  ? 

Mr.  Wallace.  That  is  what  he  had  in  mind,  and  I  revised  it  ma- 
terially to  put  in  letter  form  to  President  Truman. 

Mr.  Sourwine.  When  you  were  dictating,  you  said  it  was  just  as 
to  Kuoming.  You  were  not  dictating  verbatim,  word  for  word,  but 
just  the  gist  for  the  ideas  that  were  to  go  down  ? 

Mr.  Wallace.  That  is  right. 

Mr.  Sourwine.  That  is  all  I  have  on  that  subject.  I  will  proceed 
to  another  subject,  Mr.  Chairman. 

What  was  Mr.  John  Carter  Vincent's  position  at  the  time  he  was 
designated  by  Secretary  Hull  to  accompany  you  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1389 

Mr.  Wallace.  I  think  he  was  called  head  of  the  China  Division  in 
the  State  Department. 

Mr.  Sour^\t:ne.  He  was  a  very  important  official  in  the  State  De- 
partment ? 

Mr.  Wallace,  He  was  head  of  the  China  Division,  which,  in  view 
of  this  trip,  would  mean  that  he  was  the  top  man. 

Mr.  SouRWiNE.  And  he  was  thoroughly  conversant  with  Chinese 
political  problems  ? 

Mr.  Wallace.  I  would  assume  he  would  be;  otherwise  he  wouldn't 
be  the  head. 

Mr.  Sourwine.  He  was  recommended  to  you  as  such,  let  us  say  ? 

Mr.  Wallace.  Yes. 

Mr.  Sourwine  Now,  Mr.  Wallace,  he  was  not 

Mr.  Wallace.  He  was  assigned  by  the  State  Department,  so  I 
assume  that  he  had  their  complete  confidence. 

Mr.  SouR^VINE.  Why  did  the  State  Department  assign  him  to  you, 
sir ;  do  you  know  ? 

Mr.  Wallace.  I  don't  know  the  full  sequence. 

Mr.  Sourwine.  I  mean  for  what  purpose  was  he  assigned  to  you? 

Mr.  Wallace.  To  accompany  me  on  the  trip. 

Mr.  Sourwine.  He  was  not  just  to  be  a  bodyguard,  was  he? 

Mr.  Wallace.  No.  I  think  in  the  first  instance  I  wrote  Cordell 
Hull  in  March  asking  him  to  assign  somebody,  and  he  spoke  of  Am- 
bassador Gauss;  and  later  Vincent,  as  head  of  the  China  Division, 
was  assigned  to  go  along  with  me. 

Mr.  Sourwine.  When  you  asked  him  to  assign  somebody,  why  did 
you  want  somebody  to  be  assigned? 

Mr.  Wallace.  I  had  found  that  in  traveling  in  a  foreign  country 
it  is  very  useful  in  having  somebody  from  the  Washington  office — 
that  is,  the  headquarters  in  Washington — to  make  contacts  with  the 
American  Ambassador  in  the  field. 

Mr.  Sourwine.  Did  you  not  want  more  than  contacts?  As  a  mat- 
ter of  fact,  there  are  no  tricks  to  this  question.  Did  you  not,  as  a 
matter  of  fact,  want  the  best  advice  you  could  have,  want  somebody 
along  that  was  more  thoroughly  familiar  with  the  political  situation  ? 

Mr.  Wallace.  Naturally  I  wanted  to  get  all  of  the  information  I 
could. 

Mr.  Sourwine.  And  it  was  for  that  purpose  that  Mr.  Vincent  was 
assigned,  was  it  not? 

Mr.  Wallace.  You  will  have  to  ask  the  State  Department  on  that. 

Mr.  Sourwine.  Did  you  not  so  assume? 

Mr.  Wallace.  I  assumed  he  was  conversant. 

Mr.  Sourwine.  Was  he  not  there  to  be  available  for  guidance  if, 
as,  and  when  you  wanted  it? 

Mr.  Wallace.  As  I  remember,  in  Secretary  Hull's  letter  he  urged 
me  to  rely  on  the  guidance  of  Ambassador  Gauss,  as  I  remember  it. 

Mr.  Sourwine.  He  did  not  urge  you  not  to  rely  on  Mr.  Vincent, 
did  he  ?    Nor  imply  it  ? 

Mr.  Wallace.  No;  but  he  did  mention  Ambassador  Gauss  as  the 
man  to  consult. 

Mr.  Sourwine.  Did  you  not  feel  that  Mr.  Vincent  was  there  to  give 
you  such  advice  as  you  would  ask  for? 

Mr.  Wallace.  Undoubtedly.  He  was  very  helpful  in  many  ways. 
He  did  accumulate  a  very  great  variety  of  material.    As  a  matter  of 


1390  INSTITUTE    OF   PACIFIC   RELATIONS 

fact,  he  sent  over  material  to  me  before  I  went  to  China,  and  I  might 
say  of  the  whole  range  of  the  political  spectrmn. 

Mr.  SouRwiNE.  And  did  he  not  continue  to  give  you 

Mr.  Wallace.  He  did  not  try  to  influence  my  judgment,  to  the  best 
of  my  knowledge.  Wliat  he  did  try  to  do  was  to  get  all  kinds  of 
material  to  me. 

Mr.  SouR^vINE.  I  did  not  ask  you  the  question.  I  ask  you  if  he  did 
not  give  you  the  benefit  of  his  best  judgment  and  of  his  knowledge 
whenever  you  asked  for  it? 

Mr.  Wallace.  He  must  have,  but  I  don't  remember.  You  would 
have  to  ask  John  Carter  Vincent  as  to  whether  he  gave  me  the  advan- 
tage of  his  best  judgment. 

Mr.  SouRwiNE.  Did  you  not  ever  ask  him  for  anything? 

Mr.  Wallace.  I  don't  remember  any  specific  conversations.  I  don't 
remember  any  specific  conversations ;  no. 

Mr.  SouRwiNE.  All  right,  sir.     We  will  pass  that  one. 

This  may  seem  somewhat  off  the  course,  but  it  is  the  last  question  I 
have  to  ask  here,  Mr.  Chairman. 

Do  you  recall,  Mr.  Wallace,  ever  malking  the  point  that  the  Mongols 
and  the  Chinese  did  not  get  along  because  the  Mongols  were  livestock 
people  and  the  Chinese  were  farmers  ?    • 

Mr.  Wallace.  It  seems  to  me  I  made  that  statement  somewhere;  yes. 

Mr.  SouRwiNE.  It  does  not  sound  funny,  does  it  ?  I  notice  that  we 
had  some  laughs  here;  not  by  Senators,  I  might  say. 

Mr.  Wallace.  No.  Well,  I  guess  the  newspaper  people  are  laugh- 
ing because  they  think  it  is  funny  that  farmers  of  different  occupations 
should  be  fighting  against  each  other;  but  it  is  true  that  that  is  a  very 
ancient  warfare  between  the  nomadic  livestock  people  and  the  settled 
agricultural  people,  and  it  was  a  key  to  a  large  part  of  what  happened 
in  that  western  part  of  China,  and  it  was  a  key  to  endless  political 
difficulties. 

Mr.  SouRWiNE.  Mr.  Wallace,  can  you  tell  us  where  you  got  your 
information  about  the  Mongols  in  that  regard? 

Mr.  Wallace.  That  information  came  from  Owen  Lattimore,  sir. 
Owen  Lattimore  was  a  very  great  expert  in  that  field.  He  spoke  Mon- 
golian, and  he  had  walked  over  the  ground  himself  on  foot  in  Sinkiang, 
and  his  observations  with  regard  to  those  nomadic  peoples  in  their 
relationship  to  the  settled  peoples  made  complete  sense  to  me  because  I 
knew  analogous  situations  in  this  country. 

Mr.  Sourwine.  That  is  all,  sir. 

Senator  Smith.  Have  you  something  else  ? 

Mr.  Morris.  No,  sir. 

Senator  Smith.  Do  jou  have  anything? 

Senator  Ferguson.  I  wondered,  Mr.  Wallace,  if  you  have  checked 
your  statement,  or  any  of  your  facts  that  you  are  giving  us,  with  the 
State  Department? 

Mr.  Wallace.  No  ;  I  have  not  been  in  touch  with  the  State  Depart- 
ment for  any  of  this  material. 

Senator  Ferguson.  Or  with  Mr.  Vincent  ? 

Mr.  Wallace.  Nor  with  Mr.  Vincent. 

Mr.  Morris.  Mr.  Ball,  if  you  will  have  the  evidence  relating  to 
the  Communist  reaction  to  Stilwell's  removal,  we  will  have  that  in 
evidence. 


INSTITUTE    OF   PACIFIC   RELATIONS  1391 

Mr.  Ball.  We  will  try  to  sencl  it. 

Senator  Ferguson.  I  understand  that  that  is  on  the  point  of  what 
they  thought  of  Stilwell  rather  than  on  the  question  of  the  removal 

in  June.  ,       i  ,        , 

Mr.  Ball.  That  is  what  I  understand.     We  may  not  be  able  to  have 

it  the  hrst  thing  in  the  morning,  because  we  have  to  have  photostats 

of  the  material  made. 

Senator  Ferguson.  How  do  you  contend  that  that  is  in  point  here? 
Mr.  Ball.  Because  obviously  the  only  contemporaneous  evidence  in 

June  as  to  what  their  reaction  toward  Stilwell's  removal  at  that  time 

might  be  must  necessarily  be  what  they  thought  of  Stilwell  at  that 

time. 

Mr.  Morris.  That  is  not  the  issue.  The  Daily  Worker  indicated 
there  that  the  question  was  a  compromise.  I  think  everyone  gi'ants 
that  the  Communists  favored  General  Stilwell. 

It  is  whether  or  not  a  recommendation  and  a  concurrence  of  his 
removal  was  an  anti-Communist  act.  That  is  the  heart  of  the  issue, 
Mr.  Ball,  and  that  is  the  evidence  we  would  like  to  have. 

Mr.  Ball.  I  would  suggest  this,  if  I  may,  to  the- committee:  that 
we  submit  the  evidence,  and  it  may  be  that  we  would  like  to  submit  at 
that  time  a  memorandum  pointing  out  the  relevancy. 

Mr.  Wallace.  I  would  express  the  hope  that  you  would  see  fit  to 
include  it  even  if  you  yourself  may  register  a  dissent  as  to  the 
relevancy. 

Mr.  Morris.  I  want  you  to  send  it  in. 

Mr.  Ball.  We  will  probably  not  be  able  to  do  that  until  sometime 
late  tomorrow  afternoon. 

Mr.  Morris.  That  is  all  right. 

Senator  Smith.  Do  you  think  that  will  be  very  voluminous? 

Mr.  Ball.  Not  very  voluminous. 

Senator  Ferguson.  You  will  photostat  that? 

Mr.  Ball.  Yes ;  we  will  photostat  the  articles. 
(The  material  referred  to  is  as  follows:) 

Cleaby,   Gottlieb,    Friendly   &   Ball, 

Washington,  D.  C,  October  24, 1951. 
Senator  Pat  McCarran, 

Chairman,  Judiaiary  Coinmittee, 

United  States  Senate,  Washington,  D.  C. 

Dear  Senator  McCarran  :  When  Mr.  Henry  A.  Wallace  last  appeared  before 
the  Subcommittee  on  lliternal  Security  on  October  17,  1951,  some  question  was 
raised  as  to  the  attitude  taken  by  the  Communist  press  in  the  United  States 
toward  the  dismissal  of  General  Stilwell  from  command  in  China.  At  that  time 
I  offered  to  produce  for  the  attention  of  the  subcommittee  extracts  from  the 
New  York  Daily  Worker,  showing  how  highly  the  Worker  valued  General  Stil- 
well. As  I  remember,  I  expressed  the  belief  that  those  extracts  would  date 
from  June  1944,  which  was  the  approximate  time  of  Mr.  Wallace's  visit  to 
China  and  of  his  cabled  recommendation  to  President  Roosevelt  that  General 
Stilwell  be  replaced  or  removed  from  control  of  political  matters  connected 
with  Chiang  Kai-shek. 

I  now  find,  however,  that  my  recollection  was  in  error  and  that  there  were 
no  significant  references  to  General  Stilwell  in  the  Worker  until  his  dismissal, 
which  occurred  late  in  October  1944.  The  references  to  him  in  November  1944, 
do,  I  believe,  sustain  the  view  tliat  the  initial  reaction  of  the  American  Com- 
munists to  the  news  of  General  Stilwell's  dismissal  was  one  of  shock  and  dismay, 
which  they  subsequently  moderated  in  order  to  make  the  best  of  a  bad  situation. 
On  reading  the  record  of  the  testimony  given  by  Mr.  Joseph  Alsop  before  your 

22848— 52(—pt.  5 10 


1392  INSTITUTE    OF    PACIFIC    RELATIONS 

subcommittee  on  October  18,  1951,  in  open  ^ssion,  I  find  that  the  relevant  articles 
from  the  Worker  were  offered  by  Mr.  Alsop  in  the  record,  namely  : 

November  1,  1944,  page  6,  article  by  Starobin:  Record,  page  2839. 

November  1,  1944,  page  8,  quotations  from  Atkinson :  Record,  page  2839. 

November  4,  1944,  page  8,  article  by  Starobin:  Record,  page  2841. 

November  4,  1944,  page  9,  article  by  Field :  Record,  page  2841. 

November  .5,  1944,  page  4,  article  by  Allen  :  Record,  page  2841. 

November  5,  1944,  page  S,  article  by  Brovpder :  Record,  page  2841. 
As  these  articles  already  have  been  pointed  out  to  the  subcommittee,  no  pur- 
pose Vi'ould  be  served  by  our  submitting  them  again.  I  understand  that  you 
have  available  to  you  the  issues  of  the  Worker  for  that  period,  including  the 
full  text  of  these  articles  as  well  as  several  others  relating  to  General  Stilwell's 
recall.  Mr.  Morris,  counsel  for  the  subcommittee,  referred  to  certain  portions  of 
the  November  1  article  by  Starobin  and  of  the  December  2  article  by  Field  as 
"the  ofiicial  Communist  reactions  to  the  removal  of  Stilwell"  and  "the  two 
reactions  of  the  Daily  Worker  to  the  removal  of  Stilwell"  (pp.  2650  and  2651, 
respectively,  of  the  typewritten  record).  Any  implications  from  this  that  those 
two  fragments  were  the  only  Communist  "reactions"  would  appear  to  be  erro- 
neous, since  they  must  be  considered  in  their  context  and  together  with  such 
other  articles  as  Starobin's  and  Field's  on  November  4,  1944,  and  Allen's  and 
Browder's  on  November  5,  1944,  as  cited  above. 

In  the  course  of  these  hearings  it  has  been  suggested  that  Amerasia  may  have 
reflected  the  Communist  line.  While  we  have  no  independent  information  on 
this  question  the  committee  may,  in  the  light  of  these  accusations,  be  interested 
in  an  article  in  Ameiasia  dated  November  17,  1944,  entitled  "Stilwell's  Recall." 
In  particular,  I  should  like  to  draw  the  attention  of  the  subcommittee  to  the  last 
page  of  the  article  (331),  in  which  the  editors  of  Amerasia,  after  setting  out 
what  they  believed  should  be  the  objective  of  the  United  States  in  China,  wrote 
as  follows : 

"These  are  the  objectives  of  America  in  China.  They  are  the  objectives  of 
all  liberal  forces  in  China  that  have  repeatedly  urged  Chiang  Kai-shek  to  take 
the  lead  in  forming  a  genuinely  representative  government  in  order  that  Chinese 
unity  may  be  strengthened  and  that  China  may  play  a  major  part  in  the  final 
and  decisive  offensive  against  Japan  and  thus  insure  for  herself  a  powerful 
voice  at  the  peace  table.  Finally,  these  are  the  objectives  for  which  General 
Stilwell  worked  unceasingly  during  liis  2  years  of  service  in  China.  It  may  be 
that  he  did  not  always  present  his  case  with  the  greatest  possible  tact,  since 
he  was  notably  a  'direct  actionist'  and  plain  speaker  rather  than  a  diplomat. 
But  there  is  no  question  that  he  fought  consistently  for  the  best  interests  of 
both  the  American  and  the  Chinese  people,  and  that  his  departure  ivas  deeply 
regretted  by  all  those  Chinese  leaders  who  ha4)e  been  working  for  a  more  lib- 
eralized regime.  No  man  has  displayed  greater  confidence  in  the  abilities  of 
the  Chinese  people  and  their  armies,  given  proper  training  and  equipment.  No 
man  has  shown  a  stronger  conviction  that  the  Chinese  themselves  must  be 
helped  to  play  a  leading  role  in  winning  their  own  war  of  national  liberation. 
The  American  Government  could  pay  no  better  tribute  to  the  Chinese  people, 
and  offer  no  more  convincing  proof  that  it  had  their  best  interests  at  heart, 
than  to  place  General  Stilwell  in  command  of  the  American  forces  that  will 
ultimately  land  on  China's  shore  to  drive  the  Japanese  from  the  continent  of 
Asia."     [Italics  added.] 

Sincerely  yours, 

George  W.  Ball. 

[From  Amerasia — a  Fortnightly  Review  of  America  and  Asia,  November  17,  1944] 

Stilwell's  Recall — The  Future  of  American-Chinese  Relations 

The  recall  of  Gen.  Joseph  W.  Stilwell  from  the  China-India-Burma  front 
and  the  resignation  of  the  American  Ambassador  to  Chungking,  Clarence  E. 
Gauss,  have  served  to  focus  widespread  American  attention  on  the  serious  internal 
situation  in  China.  In  the  flood  of  newspaper  and  radio  comment  evoked  by 
Stilwell's  recall,  the  general  American  public  has  for  the  first  time  been  made 
thoroughly  aware  of  the  darker  side  of  the  picture  as  far  as  China's  political  and 
military  situation  is  concerned — a  side  long  familiar  to  close  students  of  the  far- 
eastern  situation. 

It  was  unfortunate  that  much  of  the  publicity  accorded  to  the  return  of  General 
Stilwell  and  Ambassador  Gauss  made  it  appear  that  some  sudden  and  disastrous 
crisis  had  arisen  in  China.    And  it  was  also  unfortunate  that  some  opponents 


INSTITUTE    OF   PACIFIC   RELATIONS  1393 

of  the  administration  seized  upon  the  Stilwell  incident  as  proof  that  the  Gov- 
ernment was  pursuing  a  dangerous  and  ill-conceived  policy  in  China.  Senator 
Robert  Reynolds,  for  example,  accused  the  Government  of  playing  two  Chinese 
factions  "against  the  middle."  Other  antiadministration  spokesmen  sought  to 
put  the  blame  on  the  shoulders  of  Harry  Hopkins  who  was  accused  of  interfering 
with  the  efforts  of  Donald  Nelson  and  General  Hurley  to  persuade  Chiang  Kai- 
shek  to  adopt  measures  for  strengthening  China's  participation  in  the  war.  Even 
Congressman  Walter  H.  Judd,  a  long-time  advocate  of  American-Chinese  friend- 
ship, promptly  charged  without  qualiticatlon  that  Stilwell  had  delivered  a  White 
House  "ultimatum"  to  the  Generalissimo  which  demanded  that  Stilwell  be  made 
commander  of  all  Chinese  armed  forces,  and  that  consequently  Chiang  Kai-shek 
very  justifiably  "blew  up"  and  demanded  Stilwell's  recall. 

Perhaps  the  most  amazing  examples  of  unsubstantiated  reasoning  on  the 
question  of  American-Chinese  relations  appeared  in  the  November  13,  1944,  issues 
of  both  Time  and  Life.  We  recommend  to  the  editors  of  these  magazines  that 
they  reread  their  own  editorial  comment  in  the  May  1,  1944,  issue  of  Life, 
containing  the  following:  "The  first-hand  report  on  China  by  Theodore  H.  White, 
which  begins  on  page  98  of  this  issue  of  Life,  will  shock  a  great  many  Americans. 
It  will  especially  shock  those  *  *  *  who  think  of  Cliina  solely  in  terms  of 
her  charm,  eloquence,  and  idealism.  *  *  *  The  White  report  is  not  .iust  a 
muckraking  job.  It  is  a  balanced  attempt  by  an  able  journalist  who  loves  China, 
to  give  a  true  picture  of  China  and  Its  government  today.  *  *  *  Perhaps  the 
most  disturbing  thing  about  White's  report  is  the  bitter  chauvinism  it  reveals  in 
high  quarters  in  Chungking.  National  unity  has  long  been  China's  greatest 
need.  *  *  *  But  some  Chinese  have  perverted  it  into  a  bitter  contempt  for 
all  foreigners.  *  *  *  We  need  China  because  she  is  a  great  potential  force 
for  freedom  and  democracy  in  Asia.  If  China  should  cease  to  be  that,  and  go 
the  way  Japan  went,  we  could  not  long  stay  friends.  *  *  *  The  United  States 
cannot  ignore  the  fact  that  if  China's  government  should  become  a  fascistic, 
power-hungry,  repressive,  landlord's-and-usurers'  government,  it  is  all  too  likely 
to  get  into  trouble  with  Russia ;  whereas  a  government  which  stands  for  freedom, 
reform,  and  international  cooperation  is  not.  Under  no  circumstances  would  the 
American  people  ever  wish  to  be  embroiled  with  the  Soviet  Union  in  a  struggle 
in  which  they  would  feel  politically  on  the  wrong  side.  But  the  freedom-loving, 
progressive  China  which  some  of  her  leaders  are  still  trying  to  bring  to  birth 
would  merit  our  support  against  the  world.  And  it  would  need  very  little  of  it, 
for  it  would  have  the  support  of  every  other  peace-loving  nation  in  the  world." 

Such  a  statement  as  the  foregoing  is  in  startling  contradiction  to  the  opinions 
expressed  in  the  pages  of  the  same  magazine  of  November  13,  1944.  We  know  of 
no  facts  that  could  justify  such  a  sharp  reversal.  On  the  contrary,  during  the 
intervening  period  an  impressive  number  of  foreign  correspondents,  American 
military  and  political  observers,  as  well  as  returned  civilians  have  uniformly 
added  evidence  that  gives  overwhelming  support  to  Theodore  White's  May  12M 
analysis  and  Life's  editorial  comment  on  it  in  the  same  issue.  What  has  hap- 
pened between  May  and  November?  Not  even  the  editors  of  Life  and  Time  can 
play  with  impunity  with  news  and  comment  that  is  not  supported  by  even  a  sem- 
blance of  fact.  They  owe  it  to  their  readers  and  to  the  American  people  as  a 
whole  to  print  the  facts  on  which  they  base  their  change  of  reasoning  and  con- 
clusions. Otherwise,  it  will  be  easier  to  give  credence  to  Drew  Pearson's  report 
published  in  his  column  of  October  l.">.  in  which  Roy  Larsen  of  Time  is  reported 
"to  be  preparing  to  continue  it  [Time's]  Russia-baiting  policy,  launched  recently 
with  the  attacks  on  Russia  by  ex-Ambassador  Bullitt."  According  to  Pearson: 
"Word  of  this  leaked  out  over  a  couple  of  highballs  in  a  Washington  hotel  recenny 
when  Time's  copublisher  Roy  Larsen  conferred  with  War  Production  Board  offi- 
cials *  *  *  of  the  paper  branch.  In  a  talkative  mood,  Larsen  expounded 
Time's  plan  to  go  out  against  Stalin  and  his  reds."  Such  strategy  would  fit  well 
into  Chungking's  own  aim  of  alienating  the  Soviet  Union  at  all  costs  from 
America  and  Great  Britain  in  all  matters  pertaining  to  the  Pacific  and  Asia. 

To  return  to  discussion  of  Stilwell's  recall  and  the  crisis  in  the  American- 
Chinese  relations,  all  the  facts  in  the  case  substantiate  the  conclusion  that  it  was 
not  provoked  by  tactless  and  unskilled  diplomacy  on  the  part  of  the  American 
Government.  Actually,  as  most  of  the  thouu'htful  newspaper  comments  pointed 
out,  the  situation  in  China  that  led  up  to  General  Stilwell's  recall  was  not  a  new 
development,  nor  was  it  the  product  of  unwarranted  American  interference  in 
China's  internal  affairs.  At  the  risk  of  repeating  much  that  has  already  appeared 
in  the  pages  of  Amerasia,  it  is  necessary  to  reexamine  briefly  the  situation  with 
which  General  Stilwell  was  confronted. 


1394  INSTITUTE    OF   PACIFIC   RELATIONS 

Since  1940,  a  process  of  economic  and  military  deterioration  had  been  going 
on  in  China  that  had  seriously  undermined  her  powers  of  resistance.  In  part, 
this  deterioration  was  tlie  result  of  conditions  that  were  beyond  China's  power 
to  control :  the  capture  or  destruction  of  her  industries  and  railways,  the  block- 
ade of  her  ports  that  cut  her  of£  from  all  sources  of  outside  aid  except  that 
which  could  be  flown  over  the  "hump,"  the  hideous  devastation  wrought  by  a 
brutal  and  ruthless  enemy,  coupled  with  the  ravages  of  famine  and  disease,  the 
skyrocketing  inflation  resulting  from  the  acute  shortages  of  all  forms  of  goods. 
But  this  deterioration  was  also  due  in  large  measure  to  the  fact  that  control 
of  the  Chinese  Government  was  monopolized  by  a  small  ruling  clique  represent- 
ing the  most  conservative  wing  of  tlie  Kuomintang,  China's  only  legal  party. 
This  clique  derived  its  power  from  the  feudal-minded  landed  gentry  who  were 
chiefly  concerned  with  preserving  the  outmoded  and  oppressive  agrarian  system 
that  was  their  only  source  of  power.  Hence  their  spokesmen  in  the  Govern- 
ment were  opposed  to  the  extension  of  political  democracy,  to  the  development 
of  free  industrial  enterprise,  and  to  reforms  in  the  system  of  land  tenure  and 
taxation.  In  other  words,  their  desire  to  maintain  a  monopoly  of  political 
and  economic  power  made  them  adamant  opponents  of  all  measures  that  might 
have  served  to  mobilize  the  united  support  of  the  Chinese  people  in  the  war 
against  Japan. 

The  methods  used  by  the  ruling  clique  to  suppress  all  political  opposition  are 
now  common  knowledge,  thanks  to  the  detailed  reports  of  such  able  observers 
as  Brooks  Atkinson  of  the  New  York  Times  and  many  others :  the  widespread 
use  of  secret  police,  the  refusal  to  initiate  democratic  procedures,  the  suppres- 
sion of  freedom  of  speech  and  of  the  press,  the  toleration  of  hoarding  and  spec- 
ulation on  the  part  of  the  influential  landlords  and  merchants,  and  the  failure 
to  make  effective  use  of  even  the  limited  supplies  of  materials  and  machinery 
available  in  order  to  increase  production.  Mr.  Atkinson  describes  the  present 
regime  in  Chungking  as  "a  moribund  antidemocratic  regime  that  is  more  con- 
cerned with  maintaining  its  political  supremacy  than  in  driving  the  Japanese 
out  of  China,"  and  this  opinion,  which  is  shared  by  many  other  competent  ob- 
servers, does  much  to  illuminate  the  basic  cause  of  General  Stilwell's  inability 
to  cooperate  effectively  with  the  Chungking  Government. 

In  the  military  sphere,  for  example,  the  reluctance  of  the  Chungking  regime 
to  undertake  real  popular  mobilization,  which  would  have  required  far-reaching 
economic  and  political  reforms,  was  reflected  in  a  corrupt  and  tyrannical  sys- 
tem of  conscription  and  the  shocking  maltreatment  of  many  of  the  Govern- 
ment's armies.  Peasants  were  forcibly  seized  from  their  homes  or  fields  and 
impressed  into  military  service,  while  those  with  sufficient  funds  or  political 
influence  could  easily  buy  immunity.  The  troops  were  very  poorly  fed,  with 
the  result  that  in  many  cases  they  were  compelled  to  plunder  and  pillage  the 
areas  in  which  they  were  billeted.  As  a  consequence  of  this  maltreatment  as 
well  as  the  poor  quality  of  much  of  China's  military  leadership,  the  morale 
of  the  armies  deteriorated  rapidly  while  the  relationship  between  the  troops 
and  the  civilian  population  in  some  areas  actually  reached  the  point  of  open 
conflict. 

A  number  of  important  battles  were  lost  in  China  as  a  result  not  only  of 
the  Government's  failure  to  supply  the  troops  with  adequate  food  or  munitions 
but  also  because  of  the  active  hostility  of  the  peasants  in  the  combat  areas. 
During  the  Honan  campaign  earlier  this  year,  for  example,  when  an  estimated 
50  to  75  thousand  Japanese  troops  defeated  and  completely  annihilated  700,000 
Chinese  troops  under  the  command  of  General  Tang  En-po,  the  peasants  had 
been  so  enraged  by  the  ruthlessuess  with  which  Tang  En-po's  troops  had  col- 
lected rice  during  the  famine  years  that  when  the  Japanese  launched  their  at- 
tack against  Honan  they  organized  guerrilla  bands  under  the  slogan  "better 
the  Japanese  than  Tang  En-po"  and  disarmed  and  sometimes  killed  many  of 
their  own  soldiers. 

In  addition  to  the  generally  lowered  morale  of  the  underfed,  ill-equipped 
Chinese  armies  and  their  failure  to  win  the  support  of  the  of  the  civilian  popu- 
lation, China's  military  operations  were  still  further  handicapped  by  the  mili- 
tary blockade  against  the  guerrilla  areas  of  north  China  by  approximately  half 
a  million  of  the  government's  best  armed  and  best  trained'  troops.  This  block- 
ade, in  effect  since  early  in  1940,  was  perhaps  the  outstanding  single  piece  of 
evidence  that  the  Chungking  regime  was  thinking  more  of  preserving  its  po- 
litical and  military  power  after  the  war  than  of  driving  the  Japanese  out  of 
Chma.  The  Chinese  guerrillas,  under  the  leadership  of  the  Eighth  Route  Army, 
had  done  a  remarkable  job  in  mobilizing  the  people  for  active  resistance  and 


INSTITUTE    OF   PACIFIC   RELATIONS  1395 

preventing  the  Japanese  from  establishing  effective  control  in  the  areas  that 
their  armies  had  overrun.  Cut  off  from  all  sources  of  outside  aid,  including 
the  rest  of  Free  China,  and  forced  to  depend  almost  entirely  on  munitions  cap- 
tured from  the  Japanese,  they  had  managed  to  establish  Chinese  Governments 
behind  and  between  Japanese-held  communication  lines  and  garrison  centers, 
and  to  enlist  the  support  of  millions  of  partisan  fighters  and  civilian  militia. 

The  success  of  the  guerrillas,  however,  was  based  on  a  program  of  popular  edu- 
cation and  political  and  economic  reform  that  was  anathema  to  the  Chungl\ing 
bureaucrats  because  it  involved  democratic  political  procedures  and  agrarian 
reforms  designed  to  improve  the  condition  of  the  peasants.  All  foreign  visitors 
to  the  guerrilla  areas  have  testified  to  the  fact  that  this  program  was  in  no 
sense  Communist,  even  though  the  Chinese  Communist  Party  had  taken  the  lead 
in  its  formulation.  On  the  contrary,  they  have  reported  that  the  guerrilla 
leaders  have  no  intention  of  seeking  to  establish  a  Communist  system  of  govern- 
ment in  China,  that  they  are  completely  loyal  to  the  ideal  of  a  national  united 
front  with  the  Kuomintang  and  other  political  groups,  that  they  recognize  the 
leadership  of  Generalissimo  Chiang  Kai-shek,  and  that  their  program  is  designed 
simply  and  solely  to  enlist  the  support  of  all  sections  of  the  population  in  the  war 
for  national  independence  and  to  lay  the  basis  for  the  development  of  a  demo- 
cratic and  economically  progressive  nation  after  the  war. 

But  to  the  landlords  and  bureaucrats  controlling  the  Chungking  regime,  it  was 
obvious  that  the  extension  of  such  reforms  throughout  China  would  mean  the 
end  of  their  monopoly  of  power.  In  their  view,  the  growth  of  the  guerrilla  forces 
to  some  500,000  regular  troops  supported  by  2,000,000  partisans  and  hundreds 
of  thousands  of  civilian  militia  did  not  represent  added  strength  in  the  war 
against  Japan  but  a  serious  menace  to  their  own  power  in  the  postwar  period. 
They  therefore  rejected  all  appeals  from  the  border-region  governments  for  the 
formation  of  a  coalition  government  under  the  leadership  of  Chiang  Kai-shek,  for 
a  genuine  mobilization  of  the  Chinese  people,  and  for  a  united  effort  on  the  part 
of  all  China's  armed  forces  against  the  Japanese.  Instead  they  maintained  a 
rigid  blockade  of  the  guerrilla  areas  and  began  to  save  up  munitions,  supplies,  and 
troops  for  a  final  show-down  with  the  Communists  after  China's  allies  had 
attended  to  Japan's  defeat. 

STILWEIX'S    STRATEGY 

It  was  this  situation  that  confronted  General  Stilwell  when  he  arrived  in  China 
in  the  spring  of  1942  to  take  up  his  duties  as  chief  of  staff  to  Chiang  Kai-shek  and 
commander  of  American  forces  in  the  China-India-Burma  theater.  Stilwell  had 
previously  spent  more  than  10  years  in  China.  He  had  taken  the  trouble  to  learn 
no  less  than  11  Chinese  dialects.  He  knew  and  admired  the  Chinese  people.  He 
was  also  convinced  that  the  Chinese  armies  could  and  should  be  trained  and 
equipped  to  play  a  major  role  in  the  defeat  of  Japan  on  the  Asiatic  Continent. 
In  his  view  this  strategy  would  not  only  be  the  quickest  and  most  effective 
method  of  achieving  an  Allied  victory  against  Japan  but  would  also  serve  to 
unite  and  strengthen  China  so  that  she  would  be  able  to  play  her  rightful  part  as 
one  of  the  four  leading  powers  in  the  postwar  world. 

Starting  from  this  initial  premise  that  the  Chinese  armies  must  be  aided  to  play 
a  more  active  part  in  the  campaign  against  Japan,  Stilwell's  main  objectives 
were  (1)  to  see  that  the  best  possible  use  was  made  of  the  limited  resources  that 
China  possessed,  and  (2)  to  get  more  supplies  into  China  by  reopening  a  land 
route  through  Burma.  From  the  outset,  however,  he  encountered  serious  obsta- 
cles— the  principal  one  being  the  fact  that  the  Chungking  Government  had  no 
desire  to  risk  its  armies  in  battle  against  the  Japanese  because  it  wished  to  save 
them  to  insure  its  political  power  after  the  war.  For  this  reason  Chinese  officials 
were  far  more  inclined  to  favor  the  strategy  advocated  by  General  Chennault, 
commander  of  the  United  States  Fourteenth  Air  Force.  Chennault  and  his  fliers 
were  naturally  heroes  to  the  Chinese  for  their  work  in  defending  Chungking  and 
other  Chinese  cities  from  Japanese  bombings,  their  amazingly  effective  air  sup- 
port of  Chinese  troops,  and  their  attacks  on  Japanese  shipping  and  communica- 
tions. An  additional  source  of  their  popularity,  however,  was  the  fact  that 
Chennault  believed  that  the  main  effort  against  Japan  in  China  should  be  made 
by  air  power,  and  therefore  that  the  greater  part  of  the  limited  supplies  reaching 
the  China  theater  should  be  used  to  strengthen  his  air  force.  All  he  asked  of  the 
Chinese  was  food  and  airfields,  and  he  did  not  concern  himself  specifically  with 
the  use  which  the  Chinese  made  of  their  land  forces.  This  strategy  of  relying 
on  American  air  power  to  do  the  job  of  defeating  Japan  in  China  was,  of  course, 
entirely  agreeable  to  the  Chinese  Government  and  received  its  full  support. 


1396  INSTITUTE    OF   PACIFIC   RELATIONS 

Better  to  retain  control  of  a  devitalized  and  weak  China,  protected  by  a  ring  of 
American  bombers,  than  to  risli  losing  coutrol  of  a  strong  and  united  nation 
exerting  all  its  energy  in  freeing  itself  from  its  enemy.  Huch  are  tbe  mental 
operations  of  a  landed  bureaucracy  fearful  of  losing  power  and  distrustful  of  its 
own  people. 

General  Stilwell,  on  the  other  hand,  believed  that  it  was  essential  to  im- 
prove China's  combat  efficiency,  reopen  a  road  through  Burma,  and  get  China 
back  into  the  war  as  an  effective  fighting  force.  He  viewed  this  as  a  purely 
military  problem,  but  it  immediately  compelled  him  to  cope  with  delicate  and 
complicated  political  issues.  In  liis  efforts  to  develop  the  Chinese  armies  into 
an  efficient  and  unified  fighting  force,  he  was  confronted  with  the  fact  that 
supplies  intended  for  the  fighting  fronts  were  being  diverted  to  the  troops 
blockading  the  guerrilla  areas  or  were  being  hoarded  for  future  use.  The 
blockade  itself  prevented  American  forces  from  making  use  of  the  highly 
strategic  areas  controlled  by  the  Chinese  guerrillas  and  also  served  to  im- 
mobilize large  numbers  of  Chinese  troops  that  might  otherwise  have  been 
fightiug  Japan.  Stilwell  was  also  handicapped  in  his  efforts  to  reopen  a  supply 
route  through  Burma  by  the  failure  of  the  British  to  undertake  a  large-scale 
amphibious  campaign  or  to  give  full  support  to  his  proposed  land  offensive. 

The  failure  to  undertake  amphibious  operations  against  Burma  was  generally 
attributed  to  the  lack  of  adequate  shipping  and  naval  strength,  but  it  was  also 
known  that  the  British  autliorities  were  not  overly  enthusiastic  about  Stilwell's 
idea  of  a  land  offensive  because  they  did  not  w-ant  to  take  Burma  back  with 
the  aid  of  the  Americans  and  Chinese  nor,  for  that  matter,  with  the  aid  of  the 
Burmese,  factors  that  would  lessen  British  prestige  and  encourage  Burmese  na- 
tionalist sentiment.  British  strategy  was  reported  to  call  for  the  defeat  of 
Japan  by  naval  and  air  power  first  and  then  the  recovery  of  Japanese-occupied 
territories  without  disturbing  the  internal  political  situation  in  those  areas  more 
than  was  absolutely  necessary.  But  despite  the  lack  of  British  encouragement 
General  Stilwell  fought  his  way  back  into  Burma  with  the  small  American- 
Chinese  force  which  he  had  trained  and  equipped  in  India,  thus  demonstrating 
his  contention  that  the  defeat  of  Japan  by  land  was  feasible. 

General  Stilwell  was  fully  aware,  however,  that  the  internal  political  situation 
in  China  constituted  the  most  serious  obstacle  in  his  aim  of  revitalizing  the 
Chinese  armies  as  an  effective  fighting  force.  He  recognized  also  that  unless  the 
internal  disunity  that  was  hamstringing  China's  war  effort  was  replaced  by  a 
genuinely  united  effort,  the  war  against  Japan  would  be  greatly  prolonged  and 
lives  of  thousands  of  American  soldiers  needlessly  sacrificed.  Consequently,  he 
had  no  alternative  but  to  put  the  issue  squarely  up  to  Chiang  Kai-shek  as  the 
head  of  the  Chinese  Government  and  the  acknowledged  leader  of  all  parties  and 
groups  in  China.  * 

Thus  General  Stilwell  continued  to  urge  that  all  China's  fighting  forces — the 
guerillas  as  well  as  the  Central  Government's  troops — be  united  in  a  single  strik- 
ing force  against  the  Japanese ;  that  the  blockade  against  the  strategic  guerrilla 
areas  be  lifted ;  that  the  United  States  be  permitted  to  supply  the  guerrillas  with 
a  minimum  of  equipment,  and  that  steps  be  taken  to  establish  air  bases  in  the 
guerrilla  areas.  In  the  political  field.  Ambassador  Gauss  also  urged  the  need  for 
establishing  unity  and  for  measures  to  counteract  the  gi'owing  opposition  to  the 
Chungking  regime  that  was  developing  throughout  free  China  as  a  result  of  the 
Government's  dictatorial  and  repressive  policies.  The  Ambassador  is  reported  to 
have  suggested  to  Chiang  Kai-shek  that  one  means  for  allaying  this  jwpular 
discontent  and  providing  the  basis  for  a  united  war  effort  would  be  the  establish- 
ment of  a  representative  war  council  in  which  all  groups  would  share  responsi- 
bility for  the  conduct  of  the  war.  This  proposal,  which  seemed  like  a  very  work- 
able compromise  between  the  Yenan  demand  for  a  genuinely  representative  coali- 
tion government  and  the  Kuomintang's  insistence  on  the  maintenance  of  one-party 
rule,  was  at  first  looked  upon  favorably  by  Chiang  Kai-shek  but  was  later  rejected. 

These  negotiations  between  Stilwell  and  Gauss  on  the  one  hand  and  the  Gen- 
eralissimo on  the  other  continued  for  almost  2  years,  and  a  good  deal  of  personal 
bitterness  was  inevitably  engendered  in  the  process,  as  the  requests  of  the  two 
American  officials  were  repeatedly  refused  and  Chiang  Kai-shek  came  to  feel 
that  the  American  Government  was  attempting  to  dictate  Chinese  policy.  Finally, 
an  impasse  was  reached  when  it  became  obvious  that  it  would  be  futile  for 
either  of  the  two  men  to  continue  their  efforts  in  the  face  of  adamant  opposi- 
tion. General  Stilwell  was  then  recalled  and  Ambassador  Gauss,'  resignation 
was  accepted. 


INSTITUTE    OF   PACIFIC   RELATIONS  1397 

AMKRICAN  AIMS  IN  CHINA 

It  must  be  emphasized,  however,  that  these  two  events  do  not  mark  a  change 
in  American  policy,  nor  do  they  prove  that  the  United  States  Government  is 
now  tacitly  acquiescing  in  the  existence  of  a  regime  in  Chungking  that  does  not 
represent  the  Chinese  r)eople  and  that  pursues  policies  that  are  detrimental  to 
their  interests  as  well  as  to  our  own.  The  American  Government  for  some  time 
has  hcen  eagerly  hoping  for  n  cliange  in  the  internal  situation  in  China  that 
would  place  Chiang  Kai-shek  at  the  head  of  a  united  nation,  that  would 
strengthen  China's  fighting  powers,  and  that  would  enable  her  to  emerge  from 
the  war  a  strong  and  prosperous  nation  on  which  we  could  pin  our  liopes  for 
enduring  peace  in  the  Far  East.  To  explore  the  possiblities  of  such  a  change, 
such  eminent  administration  spokesmen  as  Vice  President  Henry  Walhice,  War 
Production  Chief  Donald  Nelson,  and  Maj.  Gen.  Patrick  Hurley  visited  China 
as  the  President's  personal  representatives.  Mr.  Wallace  expressed,  as  clearly 
as  he  could  under  the  circumstances,  the  desii-e  of  the  American  people  for  a 
strong,  united,  and  democratic  China,  and  specifically  called  attention  to  the 
fact  that  no  country  "can  be  industrially  sound  or  strong  unless  both  its  agri- 
cultural technique  and  the  agricultural  part  of  its  society  are  progressive  and 
prosperous" — a  statement  which  may  be  construed  as  a  direct  criticism  of  the 
economic  policies  of  the  Chungking  regime. 

Similarly,  the  chief  pui-pose  of  Mr.  Nelson's  visit  was  to  put  the  following 
propositions  before  Generalissimo  Chiang  Kai-shek:  that  the  American  Govern- 
ment is  eager  to  have  China  emerge  as  the  leading  power  in  Asia  and  is  prepared 
to  give  China  extensive  assistance  in  achieving  this  goal ;  that  xVmerica  hopes 
to  see  Chiang  Kai-shek  as  the  leader  of  this  new  and  powerful  China  :  and,  third, 
that  American  aid  in  achieving  this  position  of  primacy  for  Chiang  Kai-shek  in 
China  and  for  China  in  Asia  must  of  necessity  be  contingent  on  a  thoroughgoing 
house  cleaning  in  Chungking.  Mr.  Nelson  apparently  did  not  go  into  the  political 
aspect  of  this  last  condition  but  is  reported  to  have  indicated  to  Chiang  exactly 
what  was  meant  as  far  as  China's  industrial  organization  was  concerned.  Pre- 
vious to  conferring  with  the  generalissimo,  Mr.  Nelson  inspected  Chinese  indus- 
tries in  and  around  Chungking.  On  the  basis  of  these  observation,  he  concluded 
that  the  Chinese  were  making  only  partial  use  of  the  industrial  equipment  they 
already  possessed  and  that  a  higher  rate  of  production  had  not  been  achieved 
because  of  inefficiency',  nepotism,  and  factional  disputes  between  various  cliques 
within  the  Kuomintang.  Mr.  Nelson  reported  these  conclusions  to  the  generalis- 
simo and  declared  that  China  could  not  expect  any  industrial  equipment  from  the 
United  States  so  long  as  she  was  not  making  effective  use  of  what  she  already 
had.  Chiang  Kai-shek  expressed  amazement  at  Mr.  Nelson's  findings  and  invited 
him  to  return  to  China  as  head  of  a  newly  established  Chinese  War  Production 
Board. 

General  Hurley's  activities  in  Chungking  have  been  less  publicized,  but  it  is 
understood  that  he  is  working  on  the  military  aspect  of  the  situation,  presumably 
with  a  view  to  persuading  the  Generalissimo  of  the  importance  of  more  active 
Chinese  participation  in  the  war.  The  fact  that  General  Hurley  is  still  in 
Chungking  and  that  Mr.  Nelson  is  returning  shortly  accompanied  by  a  gi-oup  of 
experts  in  iron  and  steel  production  to  aid  in  organizing  a  Chinese  War  Produc- 
tion Board  and  stimulating  Chinese  industrial  production  is  sufficient  proof  that, 
though  in  one  sense  General  Stilwell's  recall  represents  a  crisis  in  Ajuerican- 
Chinese  relations,  it  is  not  the  disaster  that  some  commentators  have  made  it 
out  to  be.  It  could  only  become  a  disaster  if  we  allowed  it  to  develop  into  a 
wholly  unwarranted  anti-Chinese  feeling  in  this  country,  overshadowing  the 
great  debt  which  we  owe  to  the  Chinese  people  for  their  continued  resistance  to 
our  common  enemy  against  far  greater  odds  than  we  have  ever  been  called 
upon  to  face.  Any  wholesale  condemnation  of  the  Chinese  would  simply  play 
into  the  hands  of  those  in  the  United  States  who  favor  a  soft  peace  with  Japan 
on  the  grounds  that  Japan  must  be  maintained  as  a  balancing  force  in  the  Far 
East,  and  who  make  good  use  of  Chinese  weakness  and  disunity  to  support  their 
argument. 

It  is  true,  of  course,  that  Mr.  Nelson  and  General  Hurley  are  confronted  with 
the  same  diflBculties  that  faced  General  Stilwell  and  Ambassador  Gauss.  Unless 
Chiang  Kai-shek  can  be  persuaded  to  broaden  the  political  basis  of  his  regime, 
they  will  have  to  work  within  the  existing  bureaucratic  framework  and  will  be 
faced  with  the  same  political  obstacles. 

It  is  reported,  for  example,  that  Mr.  Nelson  intends  to  recommend  the  appoint- 
ment of  Tseng  Yang-fu  as  head  of  the  proposed  Chinese  War  Production  Board. 


1398  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Tseng,  a  graduate  in  engineering  from  the  University  of  Pittsburgh,  has 
been  Minister  of  Communications  in  the  Chinese  Government  and  has  been  offi- 
cially responsible  for  the  construction  of  airfields  in  China.  He  is  also,  however, 
a  classmate  of  Chen  Li-fu  and  a  prominent  member  of  the  highly  reactionary  CC 
clique.  One  may  legitimately  ask  how  a  program  of  increased  industrial  produc- 
tion can  be  effectively  carried  out  by  a  leading  member  of  a  bureaucracy  that  has 
for  so  long  deliberately  stifled  such  efforts. 

But  despite  these  diflBculties  Mr.  Nelson's  return  to  China  holds  out  the  promise 
of  an  improvement  in  the  basic  situation  that  has  disturbed  American-Chinese 
relations.  For  it  is  certain  that  a  determined  effort  to  stimulate  industrial  pro- 
duction and  curtail  hoarding  and  speculation  in  essential  raw  materials  would  do 
much  to  revive  Chinese  morale,  check  the  disastrous  spiral  of  inflation,  and  break 
the  paralyzing  grip  of  the  landed  bureaucracy.  It  is  to  be  hoped  that  in  addition 
to  this  measure  on  behalf  of  strenghtening  China's  economic  structure,  the  Amer- 
ican Government  will  send  as  our  new  Ajubassador  to  China- a  high-ranking  diplo- 
mat of  proven  ability  who  will  be  able  to  contribute  to  a  solution  of  the  Chinese 
political  crisis  by  convincing  the  Chinese  Government  that,  on  the  one  hand,  we 
recognize  China  as  an  important  independent  power  and  that,  on  the  other,  it  is 
in  China's  interests  as  well  as  our  own  that  she  should  participate  more  actively 
in  the  forthcoming  offensive  against  Japan. 

The  United  States  has  no  desire  to  dictate  to  the  Chinese  Government.  We  owe 
a  great  debt  to  China  because  despite  all  hardships  and  handicaps  she  has 
steadfastly  refused  to  seek  peace  with  Japan.  We  have  no  ulterior  designs  on 
China ;  all  we  want  is  that  China  shall  emerge  from  this  war  a  free,  strong,  and 
friendly  ally.  But  it  is  clearly  the  responsibility  of  the  American  Government 
to  do  everything  possible  to  ensure  a  speedy  end  to  the  war  in  Asia  and  to  make 
certain  that  the  lives  of  American  soldiers  are  not  needlessly  sacrificed.  When 
American  forces  eventually  land  on  the  coast  of  China,  for  example,  it  is  impera- 
tive that  they  find  a  friendly  population,  able  and  vdlling  to  give  them  strong 
support.  It  so  happens  that  the  Chungking  government  at  present  has  no  control 
over  these  coastal  areas,  but  that  the  Chinese  guerrillas  have.  Similarly,  if  our 
Air  Force  in  China  is  to  operate  effectively  against  Japanese  industrial  centers  in 
Manchuria  and  north  China,  it  must  have  the  use  of  bases  in  the  guerrilla-con- 
trolled areas  in  tlie  north. 

It  is  for  this  reason  that  American  officials  in  China  have  urged  and  must 
continue  to  urge  that  some  compromise  be  reached  between  the  guerrilla  forces 
and  Chungking  that  will  enable  American  arms  and  technical  aid  to  be  supplied 
to  all  sections  of  China's  fighting  forces.  It  is  for  this  reason  that  we  may  be 
compelled  to  supply  aid  to  the  guerrillas,  even  without  Chungking's  approval,  if 
no  such  compromise  is  forthcoming.  It  is  for  this  reason  that  we  cannot  allow 
American  supplies  to  be  hoarded  for  use  in  a  future  civil  war. 

The  task  of  the  American  Government  is  to  persuade  Chiang  Kai-shek  to 
respond  to  the  unanimous  demand  of  all  non-Kuomintang  groups  in  China  that 
he  become  the  leader  of  a  genuinely  united  China  instead  of  ruling  in  the  name 
of  a  single  party.  The  New  York  Times  in  a  recent  editorial  summed  up  the  hope 
of  all  sincere  friends  of  China  when  it  declared  that,  while  we  must  and  should 
accept  Chiang  Kai-shek  as  the  acknowledged  leader  of  China,  we  can  and  should 
"make  it  clear  to  Chiang  that  his  prestige  will  be  enhanced,  not  diminished,  if  he 
takes  certain  steps :  If  he  accepts  American  military  guidance  in  return  for 
American  military  help ;  if  he  throws  the  whole  weight  of  his  armies  against  the 
Japanese  instead  of  holding  a  great  part  of  them  inactive  or  on  guard  duty 
against  his  political  opponents ;  if  he  makes  a  genuine  truce  with  the  Chinese 
Communists ;  if  he  consents  to  take  into  his  Government  members  of  the  repre- 
sentative groups  and  parties ;  and  if  he  permits  the  freedom  of  the  press  and  of 
discussion  which  is  the  only  possible  basis  for  the  democracy  to  which  he  has 
again  and  again  pledged  himself.  *  *  *  Peace  in  the  Orient  without  a  stable 
and  prosperous  China  is  unthinkable.  But  it  is  time  to  speak  frankly  in  the 
interests  of  that  stability,  that  prosperity,  and  tlie  freedom  without  which  neither 
can  be  attained." 

These  are  the  objectives  of  America  in  China.  They  are  the  objectives  of  all 
liberal  forces  in  China  that  have  repeatedly  urged  Chiang  Kai-shek  to  take  the 
lead  in  forming  a  genuinely  representative  government  in  order  that  Chinese 
unity  may  be  strengthened  and  that  China  may  play  a  major  part  in  the  final  and 
decisive  offensive  against  Japan  and  thus  insure  for  herself  a  powerful  voice  at 
the  peace  table.  Finally,  these  are  the  objectives  for  which  General  Stilwell 
worked  imceasingly  during  his  2  years  of  service  in  China.  It  may  be  that  he  did 
not  always  present  his  case  with  the  greatest  possible  tact,  since  he  was  notably 


INSTITUTE    OF   PACIFIC   RELATIONS  1399 

a  direct  actionist  and  plain  speaker  rather  than  a  diplomat.  But  there  is  no 
question  that  he  fought  consistently  for  the  best  interests  of  both  the  American 
and  the  Chinese  people  and  that  his  departure  was  deeply  regretted  by  all  those 
Chinese  leaders  who  have  been  working  for  a  more  liberalized  regime.  No  man 
has  displayed  greater  confidence  in  the  abilities  of  the  Chinese  people  and  their 
armies,  given  proper  training  and  equipment.  No  man  has  shown  a  stronger 
conviction  that  the  Chinese  themselves  must  be  helped  to  play  a  leading  role  in 
winning  their  own  war  of  national  liberation.  The  American  Government  could 
pay  no  better  tribute  to  the  Chinese  people  and  offer  no  more  convincing  proof 
that  it  had  their  best  interests  at  heart  than  to  place  General  Stilwell  in  com- 
mand of  the  American  forces  that  will  ultimately  land  on  China's  shores  to  drive 
the  Japanese  from  the  continent  of  Asia. 

Senator  Smith.  Otherwise  it  might  be  possible  to  just  flood  the 
record. 

Mr.  Ball.  No  ;  it  will  be  quite  factual. 

Mr.  Wallace.  I  hope  I  will  be  absolved  of  any  guilt  of  an  endeavor 
to  flood  the  record  today. 

Senator  Smith.  Do  you  have  anything  else? 

Mr.  Morris.  That  is' all.     Thank  you  very  much,  Mr.  Wallace. 

Senator  Ferguson.  By  the  way,  did  you  want  to  put  in  any  part 
of  that  statement  from  the  other  day  into  the  record,  or  did  you  in- 
clude it? 

Mr.  Wallace.  No  ;  that  is  included  in  here.  I  deliberately  framed 
this  so  it  would  be  included. 

Mr.  Morris.  Mr.  Wallace,  did  you  indicate  in  the  executive  session 
the  other  day  that  you  were  going  to  make  available  the  memorandum 
in  connection  with  the  talk  you  had  with  Mr.  Holland  ? 

Mr.  Ball.  Yes ;  I  have  that  here  today.  Mr.  Wallace  brought  it 
down.  It  is  not  a  memorandum  that  Mr.  Wallace  made,  but  it  is  a 
memorandum  which  was  supplied  to  Mr.  Wallace  by  Mr,  Holland  after 
the  conversation. 

Mr.  SouRWiNE.  There  are  two  memorandums  that  are  to  come  to  the 
committee,  are  there  not? 

Was  not  one  the  memorandum  that  Mr.  Holland  gave  you  with 
regard  to  certain  portions  of  your  pamphlet  ? 

Mr.  Ball.  No ;  it  is  the  testimony  of  the  pamphlet,  as  I  recall. 

Mr.  Wallace.  That  is  the  only  one  I  have,  at  any  rate. 

Senator  Smith.  What  is  the  other  one  ? 

Mr.  SouRWiNE.  It  just  runs  in  my  mind  that  Mr.  Holland  also  fur- 
nished him  a  memorandum  about  the  testimony  of  Mr.  Dennett,  and 
that  he  was  going  to  furnish  us  with  it. 

Mr.  Wallace.  No. 

Mr.  SouRwiNE.  Did  you  not  testify  that  Mr.  Holland  had  furnished 
you  with  a  memorandum  with  regard  to  Dennett's  testimony  before 
this  committee  ? 

Mr.  Ball.  That  is  right ;  and  this  is  Dennett's  testimony  before  the 
committee  with  respect  to  the  pamphlet.  It  combines  both  of  those 
things. 

This  is  a  memorandum  criticizing  Dennett's  testimony  with  respect 
to  the  pamphlet. 

Mr.  SouRwiNE.  In  other  words,  the  memorandum  that  Mr.  Holland 
gave  you  when  he  came  up  to  the  farm  is  this,  and  there  were  not  two 
separate  memorandums  ? 

Mr.  Wallace.  Just  this. 

Mr.  SouRwiNE.  That  is  right ;  I  am  sorry. 


1400  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Smith.  That  will  be  placed  in  the  record. 
(The  information  referred  to  is  as  follows :) 

Comments  on  Wallace  Pamphlet 
(Dennett  testimony,  hearings,  vol.  17.  pp.  1763-1771) 

1.  Dennett  himself  states  (pp.  1763,  1770-1771)  that  publication  of  a  pamph- 
let by  Mr.  Wallace  was  discussed  in  the  executive  committee  and  approved  by 
them. 

2.  The  account  of  the  origin  of  the  pamphlet  given  by  Dennett  (p.  1763)  and  by 
Mrs.  Lattimore  (testimony  in  executive  session,  quoted  in  Dennett  volume,  p. 
1767)  is  incomplete.  Dennett  says:  "Early  in  1945  (error;  he  meant  1944)  I 
received  word  from  the  Washington  office  that  Owen  Lattimore  believed  that 
Mr.  Wallace  might  be  willing  to  write  a  pamphlet  *  *  *"  Mrs.  Lattimore 
says  the  pamphlet  "originated  because  Mr.  Wallace,  who  was  the  Vice  Presi- 
dent of  the  United  States,  had  become  interested  in  the  Far  East,  and  had  some 
ideas  about  the  Far  East,  and  so  the  IPR  thought  it  would  be  very  interesting 
to  have  a  pamphlet  written  by  him." 

The  genesis  of  the  pamphlet  goes  much  further  back  than  this.  For  a  long 
time  Miss  Miriam  S.  Farley,  the  editor  of  the  IPR  popular  pamphlet  series,  had 
urged  that  several  nationally  known  persons  be  invited  to  write  pamphlets  for 
the  series,  with  a  view  to  promoting  the  sale  of  the  series  as  a  whole.  In  this 
connection  a  good  many  names  were  canvassed,  and  two  were  finally  selected : 
Vice  President  Wallace  and  Mr.  Eric  Johnston.  The  selection  was  made  on 
two  grounds:  (1)  both  men  were  qualified  to  write  on  the  subjects  chosen;  (2) 
both  were  men  whom  the  IPR  was  able  to  approach  through  mutual  friends  who 
might  be  instrumental  in  persuading  them  to  write. 

The  approach  to  Mr.  Wallace  was  made  with  the  aid  of  Owen  Lattimore ;  the 
approach  to  Mr.  Johnston  was  made  with  the  aid  of  Benjamin  H.  Kizer,  of 
.Spokane.  Mr.  Wallace  was  asked  to  write  on  the  post  war  far  eastern  policy 
of  the  United  States,  and  Mr.  Johnston  on  the  post  war  economic  relations  be- 
tween the  United  States  and  the  Far  East.  Both  men  accepted  the  IPR's  in- 
vitation. In  Mr.  Wallace's  case  the  pamphlet  was  written  and  published.  To 
the  IPR's  regret,  Mr.  Johnston  later  found  that  he  did  not  have  time  to  write  a 
pamphlet,  so  this  project  did  not  materialize.  Thus  circumstances  made  it 
impossible  to  carry  out  the  original  aim  of  publishing  two  pamphlets  by  men  of 
national  reputation  but  representing  different  points  of  view. 

3.  During  Dennett's  testimony,  Mr.  Mandel,  of  the  subcommittee's  staff,  read 
the  following  quotations  from  the  Wallace  pamphlet : 

(a)  "Free  Asia  will  include  first  of  all  China  and  Soviet  Asia,  which  form  a 
great  area  of  freedom,  potentially  a  freedom  bloc  which  it  is  to  our  interest  to 
have  become  a  freedom  bloc  in  fact     *     *     *"  (p.  24). 

This  quotation  is  torn  from  its  context  in  such  a  way  as  to  completely  distort 
its  meaning.  In  this  passage,  Mr.  Wallace  was  drawing  a  contrast  between  the 
countries  of  Asia  which  were  independent,  that  is  free,  and  tliose  which  at  that 
time  were  still  under  colonial  rule.  He  recommended  that  the  United  States 
encourage  an  orderly  development  toward  greater  self-government  and  eventual 
independence  for  colonial  peoples.  This  is  made  clear  when  the  entire  passage 
is  quoted : 

"Whereas  after  the  war  we  shall  find  Asia  economically  still  largely  in  a  stage 
of  primitive  agriculture,  politically  we  shall  find  it  divided  into  two  parts :  Free 
Asia  and  subject  Asia.  While  Lincoln's  phrase  cannot  be  applied  literally,  yet 
in  the  larger  sense  it  is  true  that  neither  a  country  nor  a  region  can  indefinitely 
continue  to  exist  half  slave  and  half  free. 

"  'Free  Asia'  will  include  first  of  all  China  and  Soviet  Asia,  which  form  a 
great  area  of  freedom,  potentially  a  freedom  bloc  which  it  is  to  our  interest  to 
have  become  a  freedom  bloc  in  fact.  It  will  include  the  Philippines,  which  has 
been  promised  its  independence,  Korea,  which  has  also  been  promised  freedom 
'in  due  course,'  and  Thailand,  which  though  independent  before  Japan's  conquest, 
is  one  of  the  small  countries  which  could  probably  not  preserve  its  freedom  except 
as  part  of  a  larger  structure  of  free  nations. 


INSTITUTE    OF   PACIFIC   RELATIONS  1401 

"Subject  Asia  or  colonial  Asia  will  inclnde  the  countries  whose  present  rulers 
have  not  yet  committed  themselves  to  definite  dates  for  the  emancipation  of  their 
colonial  subjects.  If  peace  came  tomorrow  this  would  include  India,  the  Dutch 
East  Indies,  Burma,  Malaya,  Indochina,  and  a  great  many  small  Pacific  islands. 

"This  large  bloc  cannot  be  described  as  'antifreedom'  but  rather  as  'not  yet 
having  freedom.'  It  is  to  our  advantage  not  to  perpetuate  this  division  but  to 
see  an  orderly  process  of  transition  so  that  the  area  of  free  Asia  will  grow  and 
the  area  of  subject  Asia  continually  diminish." 

(&)  "The  Russians  have  demonstrated  their  friendly  attitude  toward  China  by 
their  willingness  to  I'efrain  from  intervening  in  China's  internal  affairs  *  *  *" 
(p.  28). 

At  the  time  Mr.  Wallace  wrote  (1944)  the  Russians  were  not  intervening  in 
CMna's  internal  affairs.  The  passage  quoted  by  Mandel  is  immediately  preceded 
by  a  quotation  from  Dr.  Hu  Shih,  former  Ambassador  to  the  United  States  of  the 
Chinese  Nationalist  Government,  as  follows: 

"It  is  my  sincere  hope  that  the  time  will  come  when  China  and  the  Soviet 
Union  may  work  shoulder  to  shoulder  not  only  in  fighting  a  common  foe,  but  in 
all  time  to  come  *  *  *.  The  peace  and  prosperity  of  Asia  demand  such  a 
mutual  understanding  between  these  two  great  countries  which  comprise  three- 
quarters  of  the  continent." 

(c)  The  three  other  passages  quoted  by  Mandel  do  not  seem  worth  commenting 
on.  But  it  should  be  noted  that  the  five  short  passages  which  he  quotes,  all  of 
which  mention  Russia,  are  not  representative  of  the  contents  of  the  pamphlet, 
which  devotes  only  a  small  amount  of  space  to  Russia — approximately  3  pages 
out  of  43.  The  principal  argument  advanced  in  the  pamphlet  is  in  favor  of  a 
program  of  economic  aid  to  Asia,  with  main  emphasis  on  agriculture.  Many 
other  postwar  problems  are  also  discussed,  including  the  colonial  problem  (see 
above),  the  future  of  Japan,  America's  strategic  needs  in  the  Pacific,  interna- 
tional organization,  etc.  The  entire  text  of  the  pamphlet  was  incorporated  in 
the  record  as  exhibit  No.  284.  But  at  the  public  hearing  Mandel  quoted  only 
passages  dealing  with  Russia,  including  one  (see  (a)  above)  which  was  com- 
pletely distorted,  but  was  picked  up  by  many  newspapers  and  thus  gave  the 
newspaper  public  a  completely  false  idea  of  the  nature  of  the  pamphlet. 

Senator  Smith.  Do  you  have  anything  else  ? 

Mr.  SouRwiNE.  I  have  nothing  more,  sir.  That  was  the  last  point 
I  wished  to  cover. 

Senator  SMrrn.  Senator  Ferguson  ? 

Senator  Ferguson.  No,  sir. 

Senator  Smith.  Mr.  Morris  ? 

Mr.  Morris.  No,  sir ;  we  have  nothing  more. 

Mr.  Joseph  Alsop  is  the  next  witness,  Mr.  Chairman. 

Senator  Smith.  We  will  extend  to  Mr.  Wallace  the  same  courtesy 
we  did  to  Mr.  Alsop ;  we  will  let  him  sit  here  and  listen. 

Mr.  Wallace.  I,  unfortunately,  have  another  commitment. 

Mr.  SouRWiNE.  May  I  make  this  statement  on  behalf  of  Mr.  Alsop : 

It  is  my  understanding  that  he  wants  to  make  a  presentation  of 
some  length  in  connection  with  which  he  would  like  to  choose  his  own 
order  of  comment. 

I  do  not  believe  Mr.  Alsop  desires  to  have  his  testimony  broken 
into  on  the  two  sessions. 

I  do  not  know  how  long  the  committee  intends  to  sit,  but  I  suggest 
consideration  might  be  given,  with  the  discretion  here  with  Mr.  Alsop, 
to  what  courtesies  might  be  extended  to  him  in  connection  with  his 
testimony. 

Senator  Smith.  It  is  20  minutes  past  4  now,  and  so  far  as  I  am 
concerned,  it  is  all  right. 


1402'  INSTITUTE    OF   PACIFIC   RELATIONS 

We  will  recess  later.    Wliat  is  your  pleasure,  Mr.  Alsop? 

Mr.  Alsop.  I  would  much  rather  appear  tomorrow,  Senator,  be- 
cause this  is  a  most  complex  subject  and  unless  you  are  prepared  to 
sit  here  very  late  at  night,  you  will  not  be  able  to  get  the  story  into 
the  record  as  one  story. 

I  would  much  rather  recess,  if  I  may. 

Senator  SinrrH.  Off  the  record. 

(Discussion  off  the  record.) 

Senator  Smith.  On  the  record.  If  there  is  nothing  else,  we  will 
recess  until  tomorrow  morning  at  9 :  30. 

( Wliereupon,  at  4 :  25  p.  m.,  Wednesday,  October  17,  1951,  the 
hearing  was  recessed  until  9:30  a.  m.,  Thursday,  October  18,  1951.) 


INSTITUTE  OF  PACIFIC  KELATIONS 


THURSDAY,   OCTOBER   18,    1951 

United  States  Senate,  Subcommittee  To 
Investigate  the  Administration  of  the  Internal 
Security  Act  and  Other  Internal  Security  Laws, 

OF  the  Committee  on  the  Judiciary, 

Washington^  D.  0. 

The  subcommittee  met  at  9 :  30  a.  m.,  pursuant  to  recess,  in  room  424, 
Senate  Office  Building,  Senator  Pat  McCarran  (chairman) ,  presiding. 

Present :  Senators  McCarran,  O'Conor,  Smith,  Watkins,  and  Fer- 
guson. 

Also  present:  J.  G.  Sourwine,  committee  counsel;  Robert  Morns, 
subcommittee  counsel;  and  Benjamin  Mandel,  director  of  research. 

Senator  Ferguson  (presiding).  The  committee  will  come  to  order. 

You  do  solemnly  swear  in  the  matter  now  pending  before  this  sub- 
committee of  the  Judiciary  Committee  of  the  United  States,  to  tell 
the  truth,  the  whole  truth,  and  nothing  but  the  truth,  so  help  you 
God? 

Mr.  Alsop.  I  do. 

TESTIMONY  OF  JOSEPH  ALSOP,  ACCOMPANIED  BY  GANSON  PURCELL 

Senator  Ferguson.  You  may  proceed. 

Mr.  Morris.  Do  you  have  any  evidence  that  bears  on  the  inquiry 
that  is  underway  by  this  committee  ? 

Mr.  Alsop.  I  have  a  substantial  amount  of  evidence  which  I  will  put 
in  the  record  as  I  continue  with  my  statement  if  I  may. 

Mr.  Morris.  Will  you  present  the  evidence  to  the  committee? 

Mr.  Alsop.  I  have  a  statement,  if  I  may  proceed. 

Senator  Ferguson.  Yes. 

Mr.  Alsop.  Mr.  Chairman,  I  have  come  before  you  voluntarily  to 
testify  that  certain  sworn  evidence  by  Louis  Budenz  is  misleading 
and  untruthful.  This  evidence  concerned  former  Vice  President 
Wallace's  trip  to  China  in  the  spring  of  1944  and  the  part  played  on 
that  trip  by  the  State  Department  official,  John  Carter  Vincent. 

With  your  permission  I  will  follow  the  orderly  system  which  your 
committee  counsel  suggested  to  Mr.  Budenz  on  his  last  appearance 
before  you. 

As  Mr.  Budenz  analyzed  the  documents  produced  by  Mr.  Wallace's 
mission  point  by  point,  I  should  like  to  analyze  Mr.  Budenz'  testi- 
mony in  the  same  manner,  setting  forth  what  he  has  said  under  oath 
against  the  actual  facts  as  shown  to  me  and  shown  by  documents. 

The  basic  statements  by  Mr.  Budenz  which  I  now  challenge  can  be 
very  quickly  summarized.    In  his  first  testimony  before  your  commit- 

1403 


14:04c  INSTITUTE    OF    PACIFIC    RELATIONS 

tee  on  this  subject  of  John  Carter  Vincent  and  Mr.  Vincent's  role  in 
Mr.  Wallace's  trip  to  China,  Mr.  Budenz  stated  affirmatively  that  Mr. 
Vincent  was  "a  member  of  the  Communist  Party  at  that  time."  • 

He  testified  further  that  the  Politburo  of  the  American  Communist 
Party  relied  on  Mr.  Vincent,  and  again  I  quote  Mr.  Budenz,  "to 
guide  Mr.  Wallace  largely  along  the  paths",  of  the  Communist  Party 
line  during  this  trip  to  China. 

In  his  second  testimony  given  more  recently  Mr.  Budenz  added 
that  the  Communist  leaders  were  pleased  with  the  Wallace  mission. 

Under  questioning  by  you.  Senator  Ferguson,  he  expanded  on  this. 
I  quote: 

Mr.  Budenz.  The  Communist  Party  Politburo,  from  its  vantage  point,  thought 
that  the  Wallace  mission  to  Soviet  Asia  and  China  was  being  properly  guided 
and  would  end  in  the  way  they  wished  it  would  end.  They  have  to  appreciate 
what  that  objective  of  theirs  was,  knowing  their  objective  during  that  particular 
period  of  time. 

Senator  Ferguson.  Do  you  feel  their  objective  was  carried  out? 

Mr.  Budenz.  Absolutely.    It  was  carried  out. 

On  the  basis  of  this  testimony  of  Mr.  Budenz,  I  have  written  to 
your  committee's  chairman  that  Mr.  Budenz  was  guilty  of  three  un- 
truths. 

The  first  and  basic  untruth  was  Mr.  Budenz's  assertion  that  the 
Wallace  mission  to  China  carried  out  a  Communist  objective.  In 
fact,  it  did  the  precise  contrary. 

The  second  untruth  was  that  Mr.  Vincent  guided  Mr.  Wallace  to- 
ward any  Communist  objective.    In  fact,  he  did  the  precise  contrary. 

The  third  untruth  was  that  Mr.  Vincent  was  a  party  member  at 
that  time. 

The  weight  of  contrary  evidence  is  such  as  to  make  this  undoubtedly 
unsupported  allegation  inherently  incredible.  It  is  first  necessary, 
therefore,  to  examine  Mr.  Budenz's  statement  that  the  Wallace  mis- 
sion carried  out  a  Communist  objective. 

Fortunately,  this  can  easily  be  tested  against  the  only  important 
results  of  the  Wallace  mission  to  China  which  are  now  upon  the  pub- 
lic record.  These  results  were  a  cable  from  Mr.  Wallace  to  President 
Eoosevelt  sent  from  Kunming  via  New  Delhi  on  June  26,  1944,  and 
a  final  report  to  President  Roosevelt  delivered  by  Mr.  Wallace  at  the 
TV^iite  House  on  July  10, 1944. 

In  these  two  documents  there  is  much  historical  and  reportorial 
matter  which  Mr.  Budenz  has  seen  fit  to  describe  as  pro-Communist 
in  character. 

If  the  committee  so  desires,  I  am  prepared  to  prove  that  in  these 
passages  of  his  testimony  Mr.  Budenz  has  been  guilty  of  gross  distor- 
tion and  deception,  but  the  really  relevant  and  striking  feature  of  these 
two  documents  is  not  this  historical  and  reportorial  matter. 

The  really  striking  feature  is  the  recommendation  to  the  President 
contained  in  the  Kunming  cable  of  June  26  that  Gen.  Joseph  W.  Stil- 
well  be  dismissed  forthwith  from  command  in  China  and  that  the 
command  be  given  to  Gen.  Albert  C.  Wedemeyer. 

Mr.  SouRwiNE.  May  I  interrupt  for  just  a  moment? 

Mr.  Alsop.  Certainly.    I  hope  you  will  stop  me  at  any  time. 

Mr.  SouRwiNE.  I  am  sure  you  made  mention  there  you  would  offer 
some  proof  if  the  committee  so  desired  and  you  did  not  mean  to  imply 
any  question  as  to  whether  the  committee  wanted  the  full  facts  with 
regard  to  what  you  are  concerned  with  ? 


INSTITUTE   OF   PACIFIC   RELATIONS  1405 

Mr.  Alsop.  No  ;  not  for  1  minute. 

Senator  Ferguson.  The  committee  does  want  all  the  evidence. 

Mr.  Alsop.  I  hope  you  will  feel  when  you  have  seen  the  evidence 
against  Mr.  Budenz's  basic  assertions  that  you  have  very  little  doubt 
he  has  deceived  the  committee  with  respect  to  this  historical  and 
reportorial  matter  which  is  subordinate. 

Mr.  SouRwiNE.  I  thought  it  should  be  made  clear  that  the  commit- 
tee desires  all  the  testimony  and  evidence  that  you  can  give  to  throw 
light  on  the  situation. 

Mr.  Alsop,  That  was  my  only  intention. 

This  recommendation  for  the  replacement  of  General  Stilwell  by 
General  Wedemeyer  was  always  regarded  as  the  central  and  decisive 
passage  of  this  Kunming  cable  both  by  Mr.  Wallace  and  by  Mr. 
Vincent. 

I  can  so  testify  because  I  was  present  and  took  part  in  all  the  pre- 
liminary discussions  with  Mr.  Wallace  and  the  accused  man,  Mr. 
Vincent. 

In  his  first  testimony  Mr.  Budenz  made  no  mention  whatever  of 
this  chief  result  of  the  Wallace  mission.  When  recalled  to  the  stand 
to  defend  his  previous  testimony,  Mr.  Budenz  oddly  sought  to  show 
that  the  nomination  of  General  Wedemeyer  was  a  pro-Communist  act, 
but  again  Mr.  Budenz  entirely  passed  over  with  no  mention  at  all  what 
was  really  significant ;  namely,  the  recommendation  that  General  Stil- 
well be  dismissed  from  command  in  China. 

This  was  the  point  that  Mr.  Wallace  and  Mr.  Vincent  discussed 
longest  and  weighed  most  carefully.  This  recommendation  to  dis- 
miss General  Stilwell  and  not  the  nomination  of  General  Wedemeyer 
was  the  truly  drastic  step  that  Mr.  Wallace  took,  and  I  think  I  can 
show  the  committee  that  this  recommendation  to  dismiss  General  Stil- 
well in  wliich  the  accused  man,  Mr.  Vincent,  participated  and  con- 
curred was  the  heaviest  blow  to  the  Communist  cause  in  China  that 
could  be  struck  at  that  time. 

Basically  this  was  true  because  General  Stilwell  was  strongly 
gripped  with  certain  attitudes  highly  favorable  to  the  Chinese  Com- 
munist cause  and  because  with  his  vast  authority  as  theater  com- 
mander was  able  to  give  effect  to  those  attitudes. 

Since  he  is  no  longer  here  to  speak  in  his  own  defense,  I  shall,  if 
the  committee  will  permit  me,  try  to  develop  what  those  attitudes 
of  General  Stilwell's  were  from  documents  penned  by  General  Stil- 
well himself. 

The  series  of  documents  begins  in  1938. 

The  Chairman.  Just  a  minute,  Mr.  Alsop.  From  what  are  you 
reading  ? 

Mr.  Alsop.  I  am  reading  from  a  presentation.  Senator,  which  I 
made  in  order  to  organize  the  evidence  and  which  the  committee 
agreed  yesterday  I  could  read. 

The  Chairman.  This  committee  ? 

Mr.  Alsop.  Yes,  sir. 

The  Chairman,  Who  was  present  at  that  time  ? 

Mr.  Alsop.  Senator  Ferguson  and  Senator  Smith  of  North  Carolina. 

The  Chairman.  They  agreed  you  should  read  this  statement? 

Mr.  Alsop.  Certainly. 

Mr.  Sourwine  also  agreed. 

The  Chairman.  Without  cross-examination  ? 


1406  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  No.  I.,  'te  questions  in  the  course  of  the  presentation, 
sir.      .  lir 

The  Chairman.  ,i5fl"*^her  you  are  running  this  committee  or  the 
committee  is  runnir/jjtl  i  ilf  is  a  matter  to  be  determined  very  shortly. 

Mr.  Alsop.  I  am  i.     trying  to  run  the  committee  in  the  least. 

The  Chairman.  I  Jiink  you  are.  You  are  proposing  to  quote 
something  now  that  isn't  in  your  statement  and  isn't  your  statement 
at  all.  It  is  a  hearsay  matter.  What  are  you  going  to  do  with  that  ? 
Are  you  going  to  be  cross-examined  on  it  and,  if  so,  how? 

Mr.  Alsop.  I  am  not  going  to  quote  anything  that  isn't  a  public 
document. 

The  Chairman.  I  understand  you  to  say  you  are  going  to  quote 
from  someone  who  is  not  here. 

Mr.  Alsop.  I  am  going  to  quote  from  a  series  of  public  documents, 
Senator. 

The  Chairman.  I  will  let  you  go  along  a  while,  but  I  am  going  to 
find  out  what  is  going  on. 

Mr.  Ai^op.  The  series  of  documents  begins  in  1938. 

The  Chairman.  Wliat  is  the  authenticity  of  these  documents? 

Mr.  Alsop.  If  you  will  wait,  Senator,  I  will  try  and  tell  you. 

The  Chairman.  I  want  to  laiow  where  you  got  them  before  you 
read  them. 

Mr.  Alsop.  This  happens  to  be  a  House  or  Senate  document. 

The  Chairman.  On  what  number  ? 

Mr.  Alsop.  It  appears  in  a  publication  by  the  Committee  on  Un- 
American  Activities  of  the  House  of  Representatives,  December  31, 
1948. 

The  Chairman.  All  right. 

Mr.  Alsop.  The  series  of  documents  begins  in  1938  when  General 
Stiiwell  was  an  obscure  colonel  assigned  as  an  intelligence  officer  in 
China.  At  that  time  he  sent  the  War  Department  a  commentary 
on  the  situation  after  the  fall  of  Nanking,  which  turned  up,  interest- 
ingly enough,  in  Whittaker  Chambers  pumpkin  papers. 

In  this  document  published  by  the  House  of  Representatives  which 
I  now  offer  as  the  first  exhibit,  Stiiwell  wrote : 

On  the  Chinese  side  only  the  Reds  have  a  definite  plan,  the  essence  of  which 
is  the  adoption  of  guerrilla  warfare  on  a  large  scale  and  the  mobilization  of  the 
masses.  The  Kuoniintang  leaders  have  been  forced  to  take  notice,  since  they 
can  suggest  nothing  better,  but  they  are  not  pushing  the  program  in  a  whole- 
hearted way  because  its  success  will  mean  the  passing  of  power  to  the  Reds. 

In  this  Stiiwell  report  of  1938  you  will  notice  what  may  be  called 
the  germ  of  a  military  prejudice  in  favor  of  the  Comnmnists  and 
against  the  Nationalists. 

This  germ,  in  turn,  became  a  violent  infection  when  General 
Stiiwell  was  brought  into  sharp  collision  with  the  Generalissimo  by 
his  wartime  assignment  in  China. 

From  almost  the  beginning  there  were  bitter  disagreements  between 
the  two  men  which  ultimately  generated  a  consuming  hatred  of 
Chiang  Kai-shek  in  General  Stil well's  mind  as  I  shall  now  seek  to 
demonstrate  in  General  Stilwell's  personal  papers,  published  by 
William  Sloane  Associates  in  New  York  after  being  arranged  and 
edited  by  Theodore  H.  White, 

The  bulk  of  this  publication  consists  of  selections  from  General 
Stilwell's  diaries  and  letters  arranged  and  organized  by  Mr.  Wliite 


INSTITUTE    OF   PACIFIC   RELATIONS  1407 

under  the  guidance  of  Mrs.  Stilwell.  You  can  ^race  the  development 
of  General  Stilwell's  attitude 

Mr.  Morris.  May  the  lecord  show,  Mr.  Cha  t  '  an,  that  these  docu- 
ments are  being  passed  around  this  morning  '  they  are  being  seen 
by  the  Senators  here  and  the  staff  for  the  first         i. 

The  Chairman.  Yes.  The  record  may  she  'if  that  is  the  fact. 
That  is  the  reason  I  am  drawing  attention,  i  am  wondering  what 
this  is  all  about. 

Mr.  Morris.  It  is  completely  without  precedent  we  should  take 
documents  in  open  session  we  have  never  seen  in  executive  session. 

The  Chairman.  It  is  without  precedent  we  should  be  taking  this 
statement.  I  would  like  to  know  how  this  came  about,  by  what 
authority.    We  should  have  the  documents  before  they  are  presented. 

Mr.  Morris.  These  were  not  mentioned  in  executive  session. 

Mr.  PuRCELL.  I  beg  your  pardon. 

The  Chairman.  AVho  are  you,  please?  Will  you  please  sit  remote 
from  the  witness  ? 

Mr.  PuRCEix.  Yes. 

The  Chairman.  When  we  want  you  to  answer  a  question,  we  will 
ask  you. 

Senator  Ferguson.  I  understand  these  are  just  excerpts  from  this 
book. 

Mr.  Alsop.  It  is  marked  in  the  book  if  there  is  any  desire  to  check 
as  to  the  authenticity  of  the  documents. 

The  Chairman.  There  will  be  a  desire,  of  course.    Why  not? 

Mr.  Alsop.  You  can  trace  the  development  of  General  Stilwell's 
attitude  in  these  posthumously  personal  papers  of  his. 

In  June  1942  only  a  few  months  after  taking  command  in  China 
General  Stilwell  was  already  writing  in  his  diary  that  the  General- 
issimo was  a — 

stupid  little  ass  and  that  tlie  Chinese  Government  was  a  structure  based  on 
fear  and  favor   in   the   hands   of  an   ignorant,   arbitrary,   and   stubborn   man. 

About  the  same  time  in  a  letter  headed  "The  Manure  Pile,"  his  name 
for  the  Generalissimo's  wartime  capital,  he  wrote  that: 

This  is  the  most  dreary  type  of  maneuvering  I've  ever  done,  trying  to  guide 
and  influence  a  stubborn,  ignorant,  prejudiced,  conceited  despot. 

The  first  mention  of  the  Communists  appears  in  September  of  the 
same  year  when  he  satirically  summarizes  a  Chinese  intelligence  esti- 
mate including  the  statement  that : 

The  Communists  are  raising  hell.  One-third  of  the  49  armies  in  the  north  have 
to  oppose  them. 

This  estimate  he  dismisses  as  "pure  crap." 

This  is  significant  in  view  of  Mr.  Budenz'  testimony  in  1944  the 
Communist  line  was  "to  end  the  blockade  of  the  northwest." 

Or,  in  other  words,  because  these  Chinese  armies  containing  the 
Communists  in  the  north  were  to  be  used  in  some  other  manner. 

Almost  from  the  first  General  Stilwell  maintained  that  by  seeking  to  . 
contain  the  Communists  the  Generalissimo  proved  he  was  not  going 
all  out  to  "beat  the  Japs,"  and  he  endlessly  badgered  Chiang  Kai-shek 
to  transfer  these  troops  from  the  north  down  to  the  Burma  forces  in 
the  south. 

L'2848— 52— pt.  5 11 


1408  INSTITUTE    OF    PACIFIC   RELATIONS 

In  short,  (Teneral  Stilwell  was  hammering  on  tlie  same  theme  some- 
time before  the  Communists  raised  their  slogan. 

To  go  back  to  the  documents,  by  January  1943,  General  Stilwell 
was  noting : 

What  a  fight  the  Russians  have  made.    The  nation  has  obviously  found  itself. 

Senator  Ferguson.  Do  you  have  the  quote  from  Budenz'  testi- 
mony ? 

Mr.  Alsop.  I  would  have  to  look  through  it. 

Senator  Ferguson.  Did  you  quote  it  there  ? 

Mr.  Alsop.  I  think  I  accurately  said  what  was  the  main  slogan. 

Senator  Ferguson.  Would  you  read  it  again? 

Mr.  Alsop.  He  testified  on  his  second  appearance  on  the  stand  that 
the  Communist  policy  was  to  end  the  blockade  of  the  northwest,  which 
was  their  name  for  the  Generalissimo's  effort  to  contain  the  Chinese 
Communist  armies. 

Senator  Ferguson.  It  is  that  that  you  are  answering? 

Mr.  Alsop.  Yes. 

By  January  1943  General  Stilwell  was  noting : 

What  a  fight  the  Russians  have  made.  The  nation  has  obviously  found  itself. 
Twenty  years  of  work  and  struggle.  Results:  Tough  physique;  unity  of  pur- 
pose ;  pride  in  their  accomplishments ;  determination  to  win. 

This  Soviet  success  he  then  compared  with : 

The  Chinese  cesspool,  a  gang  of  thugs  with  the  one  idea  of  perpetuating  them- 
selves and  their  machine. 

And  General  Stilwell  concluded  angrily : 

We  are  maneuvered  into  the  position  of  having  to  support  this  rotten  regime 
and  glorify  its  figurehead,  the  all-wise  great  patriot  and  soldier-peanut.    My  God. 

Peanut  was  General  Stilwell's  customary  name  for  the 
Generalissimo. 

In  a  note  written  in  July  of  the  same  year  General  Stilwell  achieved 
his  most  complete  collection  of  unflattering  adjectives  for  Chiang 
Kai-shek — 

Obstinate,  pigheaded,  ignorant,  intolerant,  arbitrary,  unreasonable,  illogical, 
ungrateful,  grasping. 

By  1944  when  Mr.  Wallace  came  to  China  the  political  note  was 
being  strongly  struck  by  General  Stilwell.  In  an  undated  note  placed 
in  1944  by  the  editors  of  the  Stilwell  papers,  the  following  appears : 

I  judge  Kuomintang  and  Kungchantang  (which  is  the  Communist  Party)  by 
what  I  saw :  Kuomintang — corruption,  neglect,  chaos,  economy,  taxes,  words 
and  deeds ;  hoarding,  black  market,  trading  with  enemy. 

Communist  program 

Mr.  Morris.  May  I  at  this  time  ask  you  the  relevancy  of  what  you 
are  reading? 

Mr.  Alsop.  This  was  the  man  being  dismissed.  It  shows  he  was 
not  only  hostile  to  the  Generalissimo,  but  very  friendly  to  the  Com- 
munists, if  you  will  allow  me  to  continue. 

Mr.  Morris.  Has  any  witness  before  this  committee  said  that  Gen- 
eral Stilwell  was  not  friendly  to  the  Chinese  Communists? 

Mr.  Alsop.  A  witness  before  this  committee  has  alleged  that  a  Com- 
munist objective  was  carried  out  by  the  dismissal  of  General  Stilwell. 

Mr.  Morris.  We  had  evidence 


INSTITUTE    OF   PACIFIC   RELATIONS  1409 

Mr.  SouRwiNE.  Just  a  minute,  Mr.  Morris.  I  would  be  very  much 
interested  in  having  Mr.  Alsop  show  the  testimony  on  the  point  he 
just  indicated.  I  don't  recall  a  witness  testifying  that  a  Communist 
objective  was  carried  out  through  the  dismissal  of  General  Stilwell. 

Mr.  Alsop.  Mr.  Budenz  said 

The  Chairman.  Let's  get  the  record. 

Mr.  Alsop.  Mr.  Budenz  said 

The  Chairman.  Let's  see  what  he  said. 

Mr.  Alsop.  I  can  read  it. 

The  Chairman.  I  want  the  official  record.    I  don't  want  your  notes.. 

Mr.  Alsop.  Please  give  me  the  record  and  I  will  read  it  to  you.- 
Sorry,  Senator.  This  is  directly  from  the  record.  It  will  take  me  a 
little  time  to  find  it. 

The  Chairman.  All  right,  find  it.  If  you  had  submitted  your 
statement  before,  we  would  not  have  had  to  take  the  time  to  find  it. 

Mr.  Alsop.  Mr.  Sourwine,  with  whom  I  discussed  it,  did  not  ask 
me  to  do  so,  Senator. 

Mr.  Sourwine.  Mr.  Alsop,  you  told  me  you  had  no  statement,  that 
you  would  have  no  prepared  statement,  you  were  simply  woiking 
from  notes. 

Mr.  Alsop.  I  am. 

Mr.  Sourwine.  But  you  cannot  expect  me  to  ask  you  for  your  notes. 
You  didn't  tell  me  you  had  a  statement. 

Mr.  Alsop.  I  have  an  orderly  presentation  which  I  was  told  I  woidd 
be  permitted  to  offer. 

This  is  page  2098  of  Mr.  Budenz'  second  testimony.  Mr.  Budenz 
said,  concerning  the  relationship  of  the  Wallace  mission  to  Communist 
policy : 

These  documents  are  presented,  as  I  said,  are  only  part  of  what  could  have 
been  presented  to  this  committee,  and  they  confirm  my  contention,  which  was 
the  Communist  Party  Politburo  from  its  vantage  point  thought  that  the  Wallace 
mission  to  Soviet  Asia  and  China  was  being  properly  guided  and  would  end  the 
way  they  wished  it  would  end.  "We  have  to  appreciate  what  that  objective  of 
theirs  was,  knowing  their  objective  during  that  particular  period  of  time. 

Senator  Ferguson.  Do  you  feel  their  objective  was  carried  out? 

Mr.  Budenz.  Absolutely.     It  was  carried  out. 

The  chief  results  of  Mr.  Wallace's  mission — — 

The  Chairman.  Now,  just  lead  your  statement  and  never  mind  the 
chief  result  of  Mr.  Wallace's  mission.  Wliat  was  your  statement  that 
was  challenged  here  by  counsel  ?     Read  your  statement. 

Mr.  Alsop.  Mj  statement  was  that 

Tlie  Chairman.  Read  the  statement. 

Mr.  Alsop.  The  record  will  have  to  be  read  back. 

Tlie  Chairman.  You  have  the  notes  before  you. 

Mr,  Alsop.  I  was  not  speaking  from  my  notes.  I  was  trying  to 
answer  Mr.  Morris'  question. 

The  Chairman.  When  did  you  speak  from  your  notes  and  when 
not? 

Mr.  Alsop.  It  depends  on  whether  I'm  being  questioned  or  not. 

The  Chairman.  You  were  not  being  questioned. 

Mr.  Alsop.  I  was. 

The  Chairman.  If  you  have  a  quotation,  I  will  read  back  from 
the  record,  or  you  read  it  from  your  notes.  You  are  not  going  to 
make  ad  libitum  statements  here  and  not  have  them  challenged-. 


1410  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Alsop.  The  stenographer  will  have  to  read  back. 

The  Chairman.  Very  well.  ^ 

(The  record  was  thereupon  read  by  the  reporter.) 

The  Chairman.  You  may  proceed  with  your  question,  counsel. 

Mr.  SouRWiNE.  It  seemed  to  me  that  the  witness  had  made  a  state- 
ment concerning  something  which  he  said  a  prior  witness  before 
this  committee  stated.     I  don't  recall  any  prior  witness  who  so  stated 

it. 

Wliat  he  has  read  from  Mr.  Budenz's  testimony  is  not  what  he 
said  a  witness  stated. 

Mr.  Alsop.  Let  me 

The  Chairman.  Just  a  minute.  Conclude  your  statement  or  your 
question. 

Mr.  SouRwiNE.  I  do  not  think  Mr.  Alsop  should  paraphrase  what 
a  prior  witness  said  when  his  specific  purpose  is  to  accuse  the  prior 
witness  of  perjury  before  the  committee. 

I  think  in  quoting  what  a  prior  witness  said  he  should  be  careful  to 
quote  exactly  from  the  testimony  before  the  committee. 

Mr.  Alsop.  May  I  continue? 

The  Chairman.  Yes,  but  you  have  your  warning.  Do  not  para- 
phrase.    You  will  not  get  it  again. 

Mr.  Alsop.  I  have  already  given  the  extremely  disagreeable  de- 
scription of  the  Kuomintang  program.  I  now  quote  from  General 
Stilwell's  description  of  the  Communist  program : 

Reduce  taxes,  rents,  interest;  raise  production  and  standard  of  living;  par- 
ticipate in  government ;  practice  what  they  preach. 

In  another  undated  paper  of  the  same  period  General  Stilwell  noted 
that — 

The  mass  of  the  Chinese  people  welcome  the  Reds  as  being  the  only  visible 
hope  of  relief. 

And  in  still  another  he  wrote  that — 

The  cure  for  China's  trouble  is  the  elimination  of  Chiang  Kai-shek. 

The  committee  will  recall  the  enormous  latitude  conferred  during 
the  last  war  on  American  theater  commanders.  I  need  hardly  point 
out  to  the  committee  that  from  the  very  first  it  was  a  positive  danger 
to  the  Generalissimo  to  have  to  rely  for  his  American  support  on  a 
theatre  commander  who  regarded  him  as  a  despot  and  a  fool  and 
his  government  as  a  monstrosity. 

I  need  hardly  point  out,  either,  that  this  danger  to  the  Generalis- 
simo had  become  extremely  acute  by  the  time  Mr.  Wallace  and  Mr. 
Vincent  reached  China  for  this  American  theater  commander  to  whom 
Chaing  Kai-shek  looked  for  aid  was  actually  calling  for  Chiang's 
"elimination"  and  describing  the  Chinese  Communists  as  the  "only 
hope  of  the  Chinese  masses." 

It  did  not  end  there,  however.  Mr  Budenz  has  testified  that  the 
rather  pale  and  moderate  description  of  China's  political-economic- 
military  crisis  in  1944  contained  in  the  Wallace  cable  was  calculated 
to  "discredit  the  Generalissimo." 

And  that  this  cable,  therefore,  followed  the  Communist  Party  line. 
In  fact,  however,  if  the  Communists  wished  to  discredi'^.  Chiang 
Kai-shek  and  shake  American  confidence  in  him.  General  Stilwell, 
;the  chief  American  representative  in  China,  whose  removal  Mr. 
Wallace  recommended,  was  the  ideal  instrument. 


INSTITUTE   OF   PACIFIC   RELATIONS  1411 

The  attacks  on  Chiang  I  have  quoted  were  not  confided  to  General 
Stilwell's  diary  alone.  He  never  tired  of  describing  the  Generalissima 
in  the  same  terms  to  the  highest  officials  of  the  American  Government 
whose  sole  important  source  of  information  on  China  he  then  was. 
There  were  excellent  reasons  to  believe,  as  the  committee  will  later 
see,  that  General  Stilwell  actually  encouraged  and  instructed  his  staff 
to  denigrate  and  belittle  Chiang  Kai-shek  in  the  same  manner. 

Furthermore,  and  this  is  the  crucial  point.  General  Stilwell  had  a 
plan  for  giving  practical  effect  to  his  preference  for  the  Chinese  Com- 
munists which  he  was  maturing  just  the  moment  when  Mr.  Wallace 
reached  China. 

Senator  Ferguson.  Had  you  ever  directly  worked  under  Stilwell? 

Mr.  Alsop.  No.  I  have  known  him  rather  well.  I  worked  under 
General  Chennault,  but  I  was  fairly  familiar  with  all  the  military 
affairs  of  the  theater  because  one  of  my  assignments  from  General 
Chennault  was  to  know  about  them. 

The  Chairman.  You  did  not  work  under  him. 

Mr.  Alsop.  I  worked  with  him 

The  Chairman.  You  did  not  work  under  him  ? 

Mr.  Alsop.  I  did  not,  but  I  was  familiar  with  the  theater  plans. 

The  Chairman.  Did  you  know  his  official  records  ?  Did  you  have 
access  to  them  ? 

Mr.  Alsop.  Senator,  as  you  know 

The    Chairman.  Will    you    answer   my   question?      Never   mind 

evadins:. 

Mr.  Alsop.  If  you  will  permit  me,  I  shall  try  to  do  so. 

The  Chairman.  Did  you  have  access  to  his  official  records  ? 

Mr.  Alsop.  I  had  access  to  some  of  his  official  records. 

The  Chairman.  General  Stilwell  ? 

Mr.  Alsop.  General  Stilwell's  telegrams  were  frequently  repeated 
to  the  Fourteenth  Air  Force  as  is  usually  the  military  custom. 

The  Chairman.  You  had  access  to  them  ? 

Mr.  Alsop.  Yes. 

The  Chairman.  Those  were  all  ? 

Mr.  Alsop.  No,  because  I  knew  members  of  his  staff  extremely 
well. 

The  Chairman.  And  they  gave  you  his  official  records?  Is  that 
the  idea  you  wish  to  convey? 

Mr.  Alsop.  They  did  not,  but  they  gave  me  extremely  clear  and 
positive  information  about  General  Stilwell's  policy  line,  Senator. 

The  Chairman.  You  got  it  from  his  subordinates  ? 

Mr.  Alsop.  I  got  it  from  his  subordinates,  and  telegrams. 

The  Chairman.  That  is  what  you  are  testifying,  what  you  got 
from  General  Stilwell's  subordinates?  Is  that  what  you  are  testi- 
fying to  under  oath  here  ? 

Mr.  Alsop.  I  am  testifying 

The  Chairman.  Will  you  answer?  Is  that  what  you  are  testify- 
ing to  under  oath  ? 

Mr.  Alsop.  I  am  testifying  to  information  which  I  received  from 
many  different  sources. 

The  Chairman.  I  am  talking  about  General  Stilwell. 

Mr.  Alsop.  My  information  from  him  does  not  come  from  his  sub- 
ordinates only.  .It  comes  from  different  sources,  from  General 
Chennault,  from  the  Chinese.     It  comes  from  newspapermen  with 


1412  INSTITUTE    OF   PACIFIC    RELATIONS 

whom  General  Stilwell  spoke  very  freely.    It  comes  from  many  differ- 
ent sources. 

The  Chairman.  Just  so  long  as  we  know  where  you  are  getting 
this.     That  was  the  question  propounded  by  Senator  Ferguson. 

Mr.  Alsop.  I  am  anxious  to  tell  you. 

General  Stilwell  had  a  plan  for  giving  practical  effect  to  his  pref- 
erence for  the  Chinese  Communists  which  he  was  actually  maturing 
at  the  moment  when  Mr.  Wallace  reached  China. 

In  Mr.  Wallace's  cable  the  committee  will  have  noted  that  a  Japa- 
nese offensive  was  then  inflicting  disastrous  defeats  on  the  General- 
issimo's armies  in  the  east  China  area. 

Senator  Ferguson.  Could  you  tell  us  whether  or  not  anyone  else 
had  sent  the  information  which  is  indicated  here  to  the  Pentagon  or 
to  the  President  about  the  conditions  in  China  and  General  Stilwell's 
attitude  on  those  conditions  ? 

Mr.  Alsop.  I  think  I  can  give  you  a  very  interesting  history  on  that 
effort. 

What  actually  happened  was  this:  When  the  Japanese  offensive 
-commenced,  General  Stilwell's  intelligence — we  used  to  receive  copies 
of  the  intelligence  report — described  it  as  a  rice  raid.  In  its  first 
phase  the  offensive  overran  in  3  weeks  the  great  and  very  rich  Prov- 
ince of  Honan,  completely  destroyed  the  armies  of  Gen.  Tankg  En 
Po. 

Gen.  Tang  En  Po  had  an  estimated  several  hundred  thousand  Chi- 
nese troops — I  think  I  said  in  my  executive  session  testimony  700,000. 
I  think  that  was  rather  high.     It  was  nearer  400,000. 

At  any  rate,  it  was  one  of  the  major  Army  groups  of  the  Chinese 
Nationalists. 

They  then  came  down  to  Changsha  on  the  Yangtze  River.  General 
Stilwell's  intelligence  was  still  treating  this  episode  as  minor.  They 
said  the  armies  of  Tang  En  Po  had  just  fallen  to  pieces  of  themselves 
and  that  anything  that  happened  before  Changsha  would  be  a  rice 
raid. 

The  defender  of  Changsha  was  a  Gen.  Shueh  Yueh.  Changsha  fell 
and  the  Japanese  began  to  drive  south  of  Changsha  toward  the  even 
more  vital  area  in  Kiangsi  Province. 

The  situation  began  to  look  veiy  black.  I  was  told  at  the  time  by  a 
member  of  General  Stilwell's  staff — General  Stilwell,  I  should  say, 
during  this  period,  was  in  Burma,  and  after  the  fall  of  Changsha  the 
intelligence  reports  took  a  completely  different  turn  and  the  offensive 
that  had  previously  been  treated  as  a  rice  raid  became  absolutely  un- 
stoppable. 

Mr.  SouRwiNE.  Are  you  talking  about  intelligence  reports  returned 
to  Washington,  returned  to  the  Pentagon  ? 

Mr.  Alsop.  The  circulation,  unless  I  am  very  incorrectly  informed — 
I  think  I  am  quite  correct — was  that  we  would  get  one,  the  Delhi 
headquarters  would  get  one,  and  they  would  be  forwarded  to  Wash- 
ington. 

Mr.  SouRWiNE.  Are  you  attempting  to  answer  Senator  Ferguson's 
question  as  to  whether  this  situation  with  respect  to  Stilwell's  atti- 
tudes, policies,  and  plans  was  reported  to  Washington? 

Mr.  Alsop.  I  don't  think  General  Stilwell's  plan  was— Senator 
Ferguson,  if  we  have  to  read  the  record 


INSTITUTE    OF    PACIFIC   RELATIONS  1413 

Senator  Ferguson.  I  am  anxious  to  know  if  what  yon  say  now 
about  Stilwell  was  all  known  and  came  to  Mr.  Wallace's  attention  and 
it  took  from  July  until  about  November — am  I  right  when  Stilwell 
was  removed  ^ 

Mr,  ]MoRRis.  Late  October. 

Senator  Ferguson.  Why  we  allowed  a  condition  as  you  are  describ- 
ing here  to  exist  in  the  Cliinese  theater  without  him  being  removed 


^te 


without  the  effort  of  Mr.  Wallace  ? 

Mr.  Alsop.  I  think  I  can  explain  that  to  you.  I  would  like  to  do  it 
later.  It  is  a  rather  major  subject  actually.  I  would  like  to  finish 
with  these  situation  reports. 

Senator  Ferguson.  You  will  explain  that  as  to  why  they  did  not 
act  in  W^ashington  without  Mr.  Wallace's  recommendation? 

]Mr.  Alsop.  They  did  act  in  Washington. 

Senator  Ferguson.  Without  Mr.  Wallace's  recommendation? 

]Mr.  Alsop.  No.  They  acted  on  this  problem  of  the  Japanese  offen- 
sive which  you  originally  questioned  me  about. 

Senator  Ferguson.  I  was  also  questioning  you  about  whether  or  not 
Washington  knew  what  was  going  on  as  far  as  our  commander  was 
concerned. 

Mr.  Alsop.  I  don't  think  they  clearly  understood  what  was  going 
on.  I  can't  testify  to  that  as  a  matter  of  knowledge,  naturally.  I  can 
give  you  a  fairly  clear  opinion. 

Senator  Ferguson.  Do  you  know  whether  Chiang  had  given  a  mes- 
sage to  anyone  else  besides  Wallace  that  he  wanted  Stilwell  removed? 

Mr.  Alsop.  Well 

Senator  Ferguson.  Do  you  know  that? 

Mr.  Alsop.  Senator,  if  you  want,  I  will  tell  you- 


The  Chairman.  The  question  is :  Do  you  know  ? 

Senator  Ferguson.  Do  you  know  whether  or  not  Chiang  gave  any 
word  to  anyone  else  other  than  Henry  Wallace  that  he  wanted  Stilwell 
removed  ?  Wallace  indicated  yesterday  that  Chiang  wanted  Stilwell 
removed. 

Mr.  Alsop.  He  did  not  testify,  Senator 

The  Chairman.  Let's  get  back  to  Senator  Ferguson's  question. 

Senator  Ferguson.  To  your  knowledge,  did  Chiang  Kai-shek  give 
any  words  or  any  message  to  anyone  other  than  Henry  Wallace  that 
he  wanted  Stilwell  removed  ? 

]Mr.  Alsop.  It  is  an  extremely  long  and  complicated  story. 

The  Chairman.  Answer  it. 

Mr.  Alsop.  Which  I  shall  be  glad  to  tell  you. 

Senator  Ferguson.  Is  it  a  "Yes"  or  "No"  answer,  with  an  explana- 
tion? 

Mr.  Alsop.  The  answer  is  "Yes,"  with  an  explanation. 

The  Chairman.  Let  us  have  the  explanation  now. 

Mr.  Alsop.  It  is  long.    It  is  as  follows : 

At  the  end  of  the  Trident  Conference  in  the  spring  of  1943  in  Wash- 
ington, at  which  General  Stilwell  had  publicly  abused  the  Generalis- 
simo before  the  entire  assembly  of  allied  commanders,  and  Mr.  Church- 
ill and  President  Roosevelt.  The  Generalissimo  naturally  heard  of 
this  incident.  I  think  he  probably  heard  about  it  from  the  British 
who  were  probably  trying  to  make  trouble,  requested  Dr.  Soong  to 
arrange  with  the  President  for  the  recall  of  General  Stilwell,  on  the 
grounds  that  the  relationship  was  nonviable. 


1414  IKSTITUTE    OF    PACIFIC    RELATIONS 

General  Stilwell  returned  to  Cliina  after  Trident,  Dr.  Soong 
remained  in  Washington.  He  did  arrange  through  Mr.  Hopkins  with 
the  President  that  Stilwell  would  be  recalled  if  the  Generalissimo 
formally  requested  that  he  be  recalled. 

In  October  of  1943  Dr.  Soong  returned  to  Chungking  to  prepare 
for  the  conference  there  at  which  Admiral  Mountbatten  was  going  to 
take  command  in  southeast  Asia.  He  got  there  about  2  days  after 
Admiral  Mountbatten. 

At  that  time  I  was  serving  Dr.  Soong  as  adviser.  I  was  thoroughly 
familiar  with  all  the  circumstances.  He  brought  word  if  the  Gen- 
eralissimo presented  a  formal  request  rather  than  this  informal 
message  through  Dr.  Soong,  the  President  would  immediately  and 
automatically  recall  General  Stilwell. 

In  my  opinion  the  President's  purpose  was  to  appoint  General 
Wedemeyer  who  had  already  been  sent  out  as  Deputy  Commander 
to  Mountbatten. 

The  Chairman.  Let  me  have  that  statement,  that  last  statement, 
just  from  "my  opinion." 

(The  record  was  thereupon  read  by  the  reporter.) 

Mr.  Alsop.  I  say  that  because  Dr.  Soong  thought  that  at  the  time 
and  he  was  familiar  with  the  atmosphere  in  the  White  House  since 
he  had  been  negotiating  this  matter. 

Senator  Ferguson.  Soong  was  of  the  opinion  that  Wedemeyer  was 
being  sent  there  for  the  purpose  of 

Mr.  Alsop.  No,  he  was  not  being  sent  there  for  the  purpose  of,  but 
he  was  the  most  probable  replacement. 

Mr.  SouRwiNE.  Did  Dr.  Soong  tell  you  that  the  President  had  in- 
dicated that  to  him  in  any  way  ? 

Mr.  Alsop.  No,  he  did  not.  He  said  he  thought  Wedemeyer  was 
the  most  likely  bet  if  Stilwell  was  recalled. 

Mr.  Sour  WINE.  He  was  just  expressing  his  own  opinion? 

Mr.  Alsop.  Yes,  but  it  was  an  informed  opinion. 

Mr.  SouRwiNE.  But  not  based  on  anything  the  President  had  said 
to  him  ? 

Mr.  Alsop.  Yes.    I  have  no  idea  how  it  was  based. 

Senator  Ferguson.  We  have  Wedemeyer  out  there  and  Soong. 
You  are  adviser  to  Soong.    What  happened  ? 

Mr.  Alsop.  As  you  will  find  in  General  Stilwell's  diary.  General 
Stilwell  had  made  a  personal  alliance — I  can  find  the  passage  for 
you  if  you  are  interested — with  Madam  Chiang  and  Madam  Kung, 
who  belonged  to  the  opposite  political  faction  from  their  brother,  Dr. 
Soong,  and  were  reluctant  to  see  him  rise  in  power  and  influence  to 
the  extent  that  he  would  have  done  if  General  Stilwell  had  been  re- 
placed by  his  arrangement. 

The  Chairman.  Would  you  clarify  your  statement  where  you  say 
they  belonged  to  different  political  factions?    Please  designate. 

Mr.  Alsop.  It  was  a  very  curious  situation  in  China.  Madam  Kung 
was  the  most  powerful  single  personality  in  the  more  conservative, 
the  more  reactionary  group  in  the  Kuomintang. 

Dr.  Soong  was  the  most  important  single  personality  in  the  more 
progressive  or  more  modern  minded  group. 

^  Madam  Chiang  allied  lierself  with  Madam  Kung  because  she  didn't 
like  Dr.  Soong,  and  finally,  Madam  Sun  Yat-sen,  the  fourth  signifi- 


INSTITUTE    OF   PACIFIC   RELATIONS  1415 

cant  member  of  the  family  was,  in  fact,  as  it  now  turns  out,  a  Commu- 
nist Asian.    She  was  ah'eady  overtly  a  Communist  sympathizer. 

The  family  feuds  of  that  particular  family  more  or  less  summed 
up  the  politics  of  China. 

The  Chairman.  What  relation  were  these  ladies  to  each  other, 
sisters  ? 

Mr.  Alsop.  They  were  sisters. 

The  Chairman.  All  you  have  mentioned  were  sisters  and  they  had 
taken  up  with  different  political  factions? 

Mr.  Alsop.  That  is  correct. 

The  Chairman.  They  are  following  that  same  line? 

Mr.  Alsop.  Madam  8un  Yat-sen  is  now,  I  believe,  a  member  of  the 
executive  committee  of  the  Chinese  Communist  Party. 

The  Chairman.  How  did  she  stand  at  that  time  as  regards  the 
Communist  Party  and  the  Nationalist  Party? 

Mr.  Alsop.  You  mean  how  did  which  one  stand? 

The  Chairman.  Did  you  mention  which  one  belonged  to  the  Com- 
munist Party  at  tliat  time  ? 

Mr.  Alsop.  Madam  Chiang,  Madam  Kung,  and  Dr.  Soong  were 
all  very  eminent  members  of  the  National  Party;  whereas.  Madam 
Sun  Yat-sen  was  ostensibly  a  member  of  the  Kuomintang.  She  was 
officially  a  member  of  the  Kuomintang  which  her  late  husband  had 
founded,  but,  in  fact,  she  was  a  strong  overt  Communist  sympathizer, 
and  as  I  say,  has  now  turned  up  on  the  executive  committee  of  the 
Chinese  Communist  Party  in  Peiping. 

General  Stilwell  had  made  an  offensive  and  defensive  alliance — 
the  event  is  described  in  his  book — with  the  two  ladies.  Madam  Kung 
and  Madam  Chiang. 

When  Dr.  Soong  returned  from  Washington  with  this  assurance 
from  the  President  that  General  Stilwell  would  be  recalled  in  re- 
sponse to  a  personal  request,  Madam  Chiang  and  Madam  Kung 
started  a  tremendous  family  fight  which  went  on  for  about  2  days  in 
the  generalissimo's  villa  up  on  the  hill. 

I  can  recall  Dr.  Soong  coming  back  from  these  sessions  in  a  state 
of  complete  exhaustion.  Madam  Kung  and  Madam  Chiang,  for  rea- 
sons of  internal  Chinese  politics,  maintained  the  position  which  was 
not  true  as  it  turned  out  when  General  Weclemeyer  was  appointed, 
that  American  aid  for  China  depended  on  General  Stilwell ;  that  he 
had  been  so  built  up  by  the  press  as  an  American  hero,  that  he  had  such 
influence  at  the  War  Department,  that  all  supplies  and  aid  for  China 
would  be  cut  off  if  the  generalissimo  presented  this  request  for  General 
Stilwell's  recall. 

Senator  Ferguson.  What  part  of  the  press  was  advocating  that 
kind  of  idea  ?    Was  it  the  Chinese  press  ? 

Mr.  Alsop.  No  ;  the  American  press  had  built  up  General  Stilwell  as 
a  hero.  The  ladies  said  that  "If  you  throw  this  American  hero  out 
of  command  in  China,  you  will  become  very  impopular  with  the 
United  States  and  you  won't  get  any  aeroplanes  and  any  guns,  or  any- 
thing else." 

Mr.  SouRWiNE.  Just  to  get  the  chronology  straight,  you  knew  at 
this  time  of  the  President's  assurance  to  Dr.  Soong  that  if  a  request 
were  made  personally  by  Chiang  there  would  be  a  removal  of  General 
Stilwell? 


1416  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  I  did,  indeed. 
Mr.  SouEwiNE.  That  was  at  what  time  ? 

Mr.  Alsop,  This  was  about  the  middle  of  October  1943.  All  the 
Generalissimo  had  to  do  was  send  a  simple  telegram  saying,  I  request 
General  Stilwell's  recall."  The  Generalissimo  was  a  very  wise  and 
great  leader  in  my  opinion.  He  suffered  from  one  defect,  as  I 
had  reason  to  observe  myself,  because  I  sometimes  worked  with  him 
also.  He  was  completely  unfamiliar  with  the  Western  World,  and 
he  was  impressed  by  this  argument  that  Mme.  Chiang  and  Mme.  Kung 
made. 

However,  at  the  end  of  the  first  stage  of  the  family  fight,  which 
was  just  before  Admiral  Mountbatten  reached  Chungking,  he  agreed 
that  he  would  support  Dr.  Soong  and  would  present  the  request  for 
General  Stilwell's  recall. 

When  Admiral  Mountbatten  reached  Chungking  accompanied  by 
General  Wedemeyer  and  General  Somervell,  he  did  present  this^  re- 
quest to  General  Somervell. 

Senator  Ferguson.  What  month? 

Mr.  Alsop.  October  1943.  This  was  done,  if  I  recall  the  circum- 
stances of  the  time  correctly,  about  5  o'clock  in  the  afternoon.  Gen- 
eral Somervell,  because  General  Stilwell  was  a  friend  of  his,  ex- 
pressed regret  that  the  Generalissimo  felt  that  he  could  no  longer 
carry  on  with  General  Stilwell. 

The  ladies  then  rushed  in  and  said,  "Now,  you  see  Somervell  is  for 
Stilwell,  too.     It  proves  everything  we  have  said." 

They  turned  the  Generalissimo  around.  Stilwell  was  then  brought 
in  and  made  to  promise  the  Generalissimo  that  he  would  obey  him. 
It  was  a  rather  humiliating  scene  about  which  Mme.  Kung  actually 
boasted  the  next  morning  to  General  Chennault. 

When  General  Stilwell  gave  the  Generalissimo  this  promise,  the 
Generallissimo  then  sent  for  General  Somervell,  who  was  at  dinner 
at  General  Ho  Ying-chin's,  and  told  him  not  to  send  the  telegram. 
He  did  this  without  telling  Dr.  Soong.  He  called  in  Dr.  Soong  the 
next  morning  at  9  o'clock.     He  told  him  then. 

Dr.  Soong  objected  bitterly.  The  Generalissimo  was  always  sus- 
picious of  Dr.  Soong,  and  then  had  a  terrible  fight  with  Dr.  Soong. 
He  actually  threw  his  teacup  on  the  floor  and  broke  it  into  quite  a 
number  of  pieces. 

Mr.  SouRwiNE.  Pardon  me,  just  for  the  sake  of  the  record.  You 
say  "actually."     Were  you  there? 

Mr.  Alsop.  No,  but  I  saw  Dr.  Soong  immediately  afterward  and 
heard  about  it. 

Mr.  SouRWiNE.  You  are  reporting  what  Dr.  Soong  told  you? 
Mr.  Alsop.  Yes.     Naturally,  I  wasn't  sitting  under  the  table  watch- 
ing the  teacup  crash  down  around  them. 

This  incident  originated  the  greatest  Chinese  political  crisis  of  that 
month  of  October  1943. 

Dr.  Soong,  being  the  leader  of  a  more  progressive  group  in  the 
Kuomintang  which  had  been  rising  in  esteem  and  influence,  had  now 
quarreled  irrevocably  with  the  Generalissimo.  Wlien  he  returned  to 
his  house  he  was  actually  under  a  kind  of  modified  house  arrest;  so, 
during  the  ensuing  months  I  was  one  of  the  very  few  people  in  Chung- 
king who  actually  saw  him  at  all,  regularly.  I  used  to  go  out  for 
walks  with  him  because  he  was  so  lonely. 


INSTITUTE    OF   PACIFIC   RELATIONS  1417 

Meanwhile,  the  Kimg  group,  which  through  Mme.  Kung  engineered 
this  coup,  swept  the  board.  General  Ho  Ying-chin  overcame  all  his 
opposition  in  the  military  machine  so  that  General  Chen  Cheng,  who 
is  now  Prime  Minister  on  Formosa,  was  dismissed  from  command; 
but,  according  to  a  well-authenticated  Chungking  report,  he  was  also 
under  house  arrest. 

The  Bank  of  China,  which  was  the  biggest  institution  in  China  in- 
dependent of  the  Kung  banking  group,  was  swept  into  Dr.  Soong's 
control. 

The  only  opposition  to  the  CC  group  in  the  Kuomintang  headed 
by  Chang  Chunnganu — he  used  a  Cantonese  spelling;  I  don't  under- 
stand the  Cantonese — was  stamped  out.  You  had  this  tremendous 
reactionary  triumph  in  the  Chinese  Government  of  which  in  some 
sense  the  Generalissimo  was  thereafter  a  prisoner  because  he  had  made 
the  wrong  decision.  He  had  committed  himself  into  General  Stil- 
well's  hands. 

General  Stilwell  turned  around  and  ceased  to  obey  him  himself 
immediately  after  that  event.  They  began  quarrelling  again  right 
away,  as  you  can  see  in  General  Stilwell's  diaries. 

Meanwhile  the  success  of  these  reactionary  groups  caused  the  most 
serious  demoralization  in  the  whole  Chinese  governmental  structure. 

To  give  you  one  example  of  that,  the  commander  of  the  defending 
armies,  the  most  important  defending  army  in  east  China,  General 
Shueh  Yueli,  whom  I  have  already  mentioned,  was  a  member  of  the 
more  modern-minded  and  progressive  faction.  He  was  detested  by 
General  Ho  Ying-chin. 

According  to  our  Intelligence,  a  month  or  so  before  the  Japanese 
offensive  actually  commenced.  General  Ho  Ying-chin,  who  did  not 
have  quite  the  power  to  dismiss  General  Shueh  Yueh  because  he  had 
strong  provincial  roots,  attempted  to  prepare  for  the  dismissal  of 
General  Shueh  Yueh  by  cutting  off  all  money  and  supplies  from  him. 

So  that  these  armies  that  were  defending  east  China  for  the  Gen- 
eralissimo were  cut  off  from  money  and  supplies  by  the  Generalis- 
simo's own  war  minister  at  the  moment  when  the  Japanese  attacked. 

Mr.  SouKWiNE.  Are  you  proceeding  with  your  own  presentation? 

Senator  Ferguson.  He  is  answering  my  question. 

]\Ir.  SouRwiNE.  I  just  wondered  what  is  the  question. 

Senator  Ferguson.  The  question  was  this:  Did  Chiang  Kai-shek 
give  notice  to  anyone  other  than  Henry  Wallace  that  ne  wanted 
Stilwell  removed. 

Mr.  SouRwiNE.  That  is  what  I  thought  your  question  was.  I  was 
trving  to  correlate  it. 

Senator  Ferguson.  I  still  remember  my  question. 

I  wonder  whether  or  not  I  can  get  this  in  a  couple  of  minutes. 
I  have  to  leave  the  hearing. 

Up  to  that  point  he  gave  a  message  to  Somervell.  Somervell  re- 
turned it  to  him  ? 

Mr.  Alsop.  The  most  important  message  he  gave  was  to  Dr.  Soong. 
Dr.  Soong  received  from  the  President  a  promise,  if  he  asked  for 
his  removal — Stilwell's  removal — Stilwell  would  be  removed. 

He  was  then  very,  forcefully  informed  by  the  two  ladies  and  was 
induced  not  to  request  Stilwell's  removal. 


1418  INSTITUTE    OF   PACIFIC    RELATIONS 

Having  given  way  at  this  time  and  failed  to  carry  out  his  agree- 
ment with  the  President,  he  then  no  longer  dared  to  ask  overtly  for 
Stilwell's  removal. 

Furthermore,  his  adviser.  Dr.  Soong,  having  been  driven  from  the 
circle  around  him,  had  to  stick  to  this  information  that  they  had  told 
the  Generalissimo  that  General  Stilwell  was  essential  to  them. 

Therefore,  General  Stilwell,  in  a  sense,  made  the  Generalissimo 
his  prisoner. 

Senator  Ferguson.  Then  no  message  is  given  until  Henry  Wallace 
really  gets  it  in  the  car  from  the  General  in  a  personal  conversation? 

Mr.  Alsop.  Yes,  and  I  think 

The  Chairman.  Is  that  the  answer  ? 

Mr.  Alsop.  I  would  argue 

The  Chairman.  I  don't  want  you  to  argue. 

Mr.  Alsop.  In  order  to  answer — I  am  trying  to  answer  accurately, 
if  you  will  permit  me  to  do  so. 

Senator,  I  think  Mr.  Wallace  testified 

The  Chairman.  Will  vou  just  listen  to  the  question? 

Senator  Ferguson.  As  far  as  your  knowledge  was  concerned,  was 
that  the  first  request  ? 

Mr.  Alsop.  I  do  not  think  it  was  a  request.  I  think  Mr.  Wallace 
testified,  if  you  will  recall,  that  the  Generalissimo  did  not  overtly  re- 
quest General  Stilwell's  recall.  He  indicated  he  would  like  General 
Stilwell's  recall. 

Senator  Ferguson.  The  substance  was  he  wanted  him  out? 

Mr.  Aisop.  That  he  did  not  like  him. 

Senator  Ferguson.  Is  that  the  first  really  that  you  would  consider 
a  request? 

Mr.  Alsop.  That  I  know  about. 

Senator  Ferguson.  1  have  to  go  to  conference. 

The  Chairman.  I  have  to  go  to  the  same  conference.  I  cannot  get 
anyone  to  come  here.  Everybody  else  is  in  some  meeting  or  another. 
It  is  imperative  we  be  there,  I  do  not  know  just  what  to  do. 

Senator  Ferguson.  It  is  so  important  we  get  this  conference  out. 

The  Chairman.  There  is  going  to  be  no  recess  if  we  do  not. 

Senator  Ferguson.  That  is  whv  wp  started  early,  thinking  that  we 
could  get  someone  to  continue  at  10 :  30.  J 

Mr.  Alsop.  Senator  O'Conor  said  he  could. 

The  Chairman.  He  has  been  notified. 

Mr.  Sourwine.  I  will  call  him  again. 

Senator  Ferguson.  I  suggest  you  just  recess  to  see  whether  or  not 
we  have  the  other  people  coming  in. 

Mr.  Morris.  While  we  are  waiting,  may  I  ask  a  question  ? 

The  Chairman.  Yes. 

Mr.  Morris.  You  realize  the  issue  about  Mr.  Budenz'  testimony  is 
simply  this:  Mr.  Budenz  has  testified  that  the  removal  of  Stilwell 
wa?  looked  upon  by  the  Communists  as  a  wise  compromise. 

Therefore,  the  evidence  that  you  produce  about  the  Communists' 
favorable  reaction  to  Stilwell  and  his  favorable  response  to  them  is 
not  in  issue  at  all  ? 

Don't  you  realize  that? 

Mr.  Alsop.  I  can't  agree  with  your  interpretation  of  Mr.  Budenz' 
testimony. 

Mr.  Morris.  Will  you  read  it,  Mr.  Mandel  ? 


INSTITUTE    OF    PACIFIC    RELATIONS  1419 

Mr.  Alsop.  I  am  trying  to  show  that  the  removal  of  General  Stilwell 
was  something  that  no  Communist  in  his  senses  could  conceivably 
have  desired  at  the  moment  when  Mr.  Wallace  recommended  it. 

Mr.  Morris.  You  heard  Mr.  Budenz'  testimony  ? 

Mr.  Alsop.  Mr.  Budenz  has  testified  on  a  whole  series  of  points. 

Mr.  Morris.  On  this  point? 

Mr.  Alsop.  I  would  have  to  call  your  attention  to  quite  a  number 
of  other  passages  of  Mr.  Budenz's  testimony.  I  do  not  agree  with 
your  interpretation  of  Mr.  Budenz's  testimony. 

I  recall  the  testimony  you  refer  to.  It  is  one  part  of  Mr.  Budenz's- 
testimony. 

The  Chairman.  Just  a  minute.  If  I  understand  the  situation  cor- 
rectly, this  witness  has  publicly  stated  and  privately  stated  that  Mr. 
Budenz  has  been  guilty  of  perjury  before  this  committee.  That  is  the 
reason  for  his  presence  here.  He  should  state  wherein  Mr.  Budenz 
has  been  guilty. 

Then  he  should  state  the  fact  that  contradicts  Mr.  Budenz.  Any- 
thing else  means  just  a  running  line  of  theory  and  opinion,  and  so 
forth. 

The  whole  situation  should  be  boiled  down  to  an  issue.  If  Mr. 
Budenz  has  lied,  this  committee  wants  to  know  it.  We  want  to  know 
wherein  he  has  lied,  and  we  want  this  witness  to  state  wherein  he  has 
lied,  because  this  is  the  challenging  witness. 

He  has  stated  publicly,  and  that  has  been  put  in  the  record  on  the 
floor  of  the  Senate,  that  Mr.  Budenz  has  been  guilty  of  perjury,  and 
he  has  intimated  that  this  committee  has  been  guilty  of  subornation 
of  perjury. 

Mr.  Alsop.  I  do  not  intimate  that. 

The  Chairman.  It  was  in  your  column,  and  the  Senator  from  New 
York  put  it  in  the  record. 

Mr.  Alsop.  It  was  not  intended  to  be  in  there. 

The  Chairman.  It  was,  just  the  same. 

I  understand  that  Senator  O 'Conor  may  come  here.  You  may 
proceed. 

Mr.  Morris.  On  page  2072  of  Mr.  Budenz'  testimony,  he  quoted 
from  the  Daily  Worker.     This  is  his  testimony : 

Then  this  is  the  important  part  I  wish  to  call  to  your  attention.     He — 

Frederick  Vanderbilt  Field  writing  in  the  Daily  Worker  of  December 
2,  1941— 

mentions  three  conditions,  but  the  third  is  the  one  important  to  the  question 
of  General  Wedemeyer : 

"*  *  *  as  to  the  third,  we  Icnow  only  that  there  was  a  brealidown  over 
the  particular  person  nominated  as  commander  in  chief,  General  Stilwell,  and 
that  President  Roosevelt  wisely  and  quickly  compromised  on  that  point.  There 
is  no  indication  that  the  general  proposition  for  an  American  commander  has, 
been  refused." 

Mr.  Alsop.  May  I  go  back  in  the  record,  INIr.  Morris  ? 

Mr.  Morris.  Yes. 

Mr.  Alsop.  I  don't  have  to  read  the  record  again.  We  just  read  the 
portion,  but  I  will  do  so. 

Mr.  Morris.  You  understand  that  Mr.  Budenz  there  testified  that 
the  official  Communist  reaction  to  Stil well's  removal  was  that  they 
considered  it  a  wise  compromise. 


1420  INSTITUTE    OF   PACIFIC   RELATIONS 

Is  it  not  implicit  in  that  that  the  concession  is  someone  is  friendly 
to  the  Communists  ? 

Mr.  Alsop.  I  do  not  agree  with  your  interpretation  of  Mr.  Budenz' 
testimony. 

The  Chairman.  You  do  not  answer  the  question,  Mr.  Alsop.  You 
argue  and  you  go  into  long  tirades  of  discussion,  but  the  question  is 
propounded  to  you  by  the  counsel  and  why  don't  you  answer  ? 

Mr.  Alsop.  My  answer  to  the  question  is  I  do  not  agree  with  Mr. 
Morris'  interpretation,  or  Mr.  Budenz'  interpretation. 

The  Chairman.  But  the  record  is  read  to  you.  Whether  you  agree 
to  it,  or  not,  the  record  is  read. 

Mr.  Alsop.  Mr.  Budenz  has  carefully  in  that  part  of  the  record 
selected  one  article  from  the  Daily  Worker  which  appeared  1  month 
after  the  dismissal  of  General  Stilwell. 

The  Chairman.  That  is  his  testimony  before  this  committee. 

Mr.  Alsop.  I  am  challenging  that  testimony. 

The  Chairman.  Yes.     Now  state  the  fact. 

Mr.  Alsop.  If  you  will  permit  me,  I  shall  bring  a  series  of  documents 
to  show 

Mr.  Morris.  I  quoted  the  December  2  Daily  Worker.  I  have  a 
November  1  issue  just  2  days  after  the  dismissal  all  saying  the  same 
thing. 

The  Chairman.  Dwell  on  what  you  have  already  asked  and  ask  him 
if  he  contradicts  that  and  why. 

Mr.  Morris.  Yes. 

The  Chairman.  This  is  a  question  of  veracity  here  wherein  the 
veracity  of  a  witness  coming  before  this  committee  is  challenged  by 
this  gentleman. 

Mr.  Alsop.  Senator,  I  am  well  aware  of  that.  It  is  a  point  that  I 
hoped  to  come  to  later  on. 

Senator  Smith.  What  is  the  question  ? 

Mr.  Alsop.  My  understanding  from  Mr.  Sourwine  was  that  I  would 
be  permitted  to  take  up  these  points  in  the  order  in  which  they  seemed 
to  me  most  logical. 

Mr.  Sourwine.  Let  us  have  that  statement  correct,  if  I  may  make  a 
statement,  Mr.  Chairman. 

The  Chairman.  Yes. 

Mr.  Sourwine.  I  had  no  understanding  with  Mr.  Alsop.  I  was 
present  with  Mr.  Alsop  at  a  conference  between  him  and  his  attorney 
in  Senator  O'Conor's  office  with  Senator  O'Conor,  at  which  time  Mr. 
Alsop  stated  what  he  would  like  to  do  in  the  way  of  proceeding  here, 
and  the  substance  of  that  was  he  would  like  to  be  able  to  proceed  with 
a  presentation  of  his  points,  point  by  point,  and  that  he  would  welcome 
questioning  as  he  went  along. 

It  was  my  understanding  that  Senator  O'Conor  took  the  view  that 
was  a  reasonable  way  to  proceed.  I  do  not  recall  that  I  gave  Mr. 
Alsop  any  commitments.  I  am  sure  Senator  O'Conor  told  him  he 
was  expressing  only  a  personal  view  and  that  the  matter,  if  a  point 
were  raised  with  regard  to  procedure,  would  have  to  be  determined 
by  the  committee. 

Is  that  not  reasonably  accurate  ? 

Mr.  Alsop.  I  don't  think  it  is  quite  accurate.  In  fact,  you  asked 
me  whether  I  wouldn't  prefer  to  be  asked  any  questions.  I  said  I 
would  welcome  questions.    You  then  suggested  that  the  questioning 


INSTITUTE    OF   PACIFIC   RELATIONS  1421 

be  limited  until  each  section  or  to  the  close  of  each  section  of  my 
presentation. 

Mr.  Purcell,  ^yho  is  here  and  who  was  present  at  this  meeting  will, 
I  am  sure,  recall  that  you  said  precisely  that.     I  think  it  is  immaterial. 

I  would  like  to  come  to  Mr.  Morris'  point  on  which  I  have  con- 
siderable documentation. 

Mr.  80URWINE.  Mr.  Morris  asked  you  a  question.  Let's  get  back 
to  a  starting  point.  He  asked  you  a  question  based  on  Mr.  Budenz's 
testimony. 

Mr.  Morris.  Do  you  realize  that  we  know  the  witness,  Louis  Budenz, 
has  testified  that  the  Communist  looked  upon  General  Stilwell's  dis- 
missal  as  a  wise  compromise? 

Mr.  Alsop.  I  do  realize  that. 

I  think  when  Mr.  Budenz  said  so,  he  distorted  fact,  Mr.  Morris. 
I  shall  attempt  to  prove  it  to  you,  if  you  will  permit  me  to  do  so. 

I  am  now  attempting  to  give  my  answer  to  your  question. 

Mr.  Morris.  Senator  Smith,  the  witness  here  has  just  said  that 
Mr.  Budenz  has  distorted  the  evidence.  I  think,  therefore,  we  have 
to  go  to  the  evidence.  Therefore,  we  go  to  the  Frederick  V.  Field 
column  of  December  2, 1944,  in  the  Daily  Worker,  and  read  it. 

Mr.  Alsop.  I  would  like  it  to  be  read  from  the  beginning. 

Mr.  Morris.  Read  any  part  you  like. 

Mr.  Alsop.  Could  I  have  it  ? 

Mr.  Morris.  I  think  you  have  it  here.  There  it  is  right  there  in 
the  record. 

Mr.  Alsop.  That  is  the  part  of  it  Mr.  Budenz  chose  to  quote. 

Mr.  Morris.  There  is  the  whole  article. 

Mr.  Alsop.  I  would  have  you  note  what  Mr.  Budenz  chose  to  quote. 

Senator  Smith  (presiding).  I  do  not  think  that  is  answering  the 
question.  We  want  to  get  the  facts  here.  That  is  a  matter  of  record. 
If  that  is  what  he  said,  that  is  what  he  said. 

"What  do  you  want  to  say  ? 

ISIr.  Alsop.  I  have  a  long  answer  to  Mr.  Morris'  question. 

Mr.  Morris.  If  he  distorted,  the  evidence  being  Frederick  V.  Field's 
guest  column  in  the  Daily  Worker  of  December  2, 1944 

Mr.  Alsop.  Let  me— — 

Senator  Smith.  Just  a  minute.    You  are  not  going  to  run  this  show. 

Mr.  ]\IoRRis.  If  Mr.  Budenz  distorted  the  evidence,  the  evidence  be- 
ing Frederick  V.  Field's  guest  column,  will  you  tell  this  committee  how 
he  did  it,  using  the  evidence  as  the  direct  source  ? 

Senator  Smith.  That  gives  you  full  leeway.  ^ 

Mr.  Alsop.  Senator,  I  mean  Mr.  Budenz  distorted  the  evidence  in 
the  sense  he  left  out  a  whole  series  of  other  publications  of  the  same 
period  in  the  Daily  Worker  which  point  in  a  different  direction. 

He  even  left  out  the  beginning  in  his  actual  testimony.  The  article 
itself  is  in  the  record.    The  beginning  of  this  column  which  is : 

I  disagree  with  those  who  take  an  entirely  pessimistic  view  regarding  recent 
developments  in  China. 

That  to  me  means  that  a  great  many  members  of  the  Communist  Party 
to  whom  Mr.  Field  was  addressing  himself  were  very  much  worried 
about  General  Stilwell's  dismissal  and  he  was  seeking  to  reassure  them. 

INIr.  Morris.  Reassure  them  what  ? 

Mr.  Alsop.  As  to  the  significance  of  General  Stilwell's  dismissal.  . 

If  you  will  permit  me,  I  will  try  to  give  you  the  rest  of  my  answer. 


1422  INSTITUTE   OF   PACIFIC   RELATIONS 

There  were  2  documents  in  the  record  on  Mr.  Budenz's  side  as  to  the 
interpretation.  There  are  2  documents  in  the  record  which  partly  sup- 
port Mr.  Budenz's  interpretation  of  the  Communist  response  to  Gen- 
eral Stilwell's  dismissal.  These  were  the  guest  column  of  Frederici^: 
Field  written  a  month  after  the  fact  already  quoted  and  an  article  on 
page  8  of  the  Daily  Worker,  issue  of  November  1,  1944,  by  Joseph 
Starobin. 

I,  myself,  as  a  member  of  the  columning  trade  would  classify  these 
articles  under  a  heading  of  our  business  which  is,  "Don't  let's  cry  too 
publicly  over  spilled  milk." 

I  must  tell  the  committee  in  publicizing  these  particular  comments 
on  the  dismissal  of  General  Stilwell  a  quite  remarkable  degree  of 
selectivity  was  shown. 

In  point  of  fact  the  November  1  issue  of  the  Daily  Worker  in  which 
the  Starobin  article  already  in  the  record  ai:)pears,  shows  every  sign 
of  being  one  of  those  rather  frequent  Worker  issues  when  the  Worker 
is  caught  with  its  party  line  down,  to  use  Mr.  Luce's  phrase. 

On  page  3  of  the  November  1  issue  appears  the  UP  dispatch  from 
Washington  describing  Stilwell's  recall.  On  page  8  appears  the 
Starobin  article  already  in  the  record,  the  theme  of  which  is : 

Stilwell's  dismissal  disclosed  the  scandalous  state  of  affairs  in  China  and 
would  therefore  generate  pressure  for  a  Chinese  coalition. 

On  the  same  page  appear  selections  from  Brooks  Atkinson's  very 
critical  report  on  Stilwell's  dismissal  in  the  New  York  Times,  includ- 
ing a  paragraph  implying  the  President  did  wrong  to  recall  General 
Stilwell. 

Under  the  cartoon  on  the  editorial  page  appears  a  far  more  im- 
portant article  again  by  Mr.  Starobin.  In  this  article,  in  the  special 
spot,  where  I  am  told  readers  of  the  Worker  are  taught  to  expect 
to  find  the  pure  distilled  milk  of  truth,  Starobin  expressed  "grave 
concern"  about  the  dismissal  of  Stilwell,  lauded  the  General  and 
called  him  "our  favorite  General." 

We  are  to  believe  that  the  Communist  leaders  genuinely  desired 
the  dismissal  of  their  favorite  General  ? 

1  suggest  to  the  committee 

Mr.  MoKRis.  Was  that  your  remark  or  the  remark  from  Starobin  ? 

Mr.  Alsop.  I  ended  the  quote;  "our  favorite  Gejieral"  is  the 
quotation. 

Mr.  Morris.  Read  his  testimony. 

Mr.  Alsop.  My  testimony  says :  "Are  we  to  believe" 

Mr.  Morris.  Read  the  record  back. 

(The  record  was  thereupon  read  by  the  reporter) 

Mr.  Alsop.    I  was  reading  from  my  testimony. 

Mr.  SouRWiNB.  Won't  you  read  back  that  part  just  to  see  whether 
you  have  "grave"  in  quotes  ? 

Mr.  Alsop.  "Grave"  should  not  be  in  quotes.  Nor  did  I  put  it  in 
quotes. 

Mr.  SouRwiNE.  It  sounded  as  though  you  said  he  expressed  "grave 
concern". 

Mr.  Alsop.  I  used  the  word  "concern". 

May  I  continue  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1423 

Senator  Smith.  Yes. 

Tlie  last  observation  yoii  made  was  a  matter  of  argument  and  not 
a  statement  of  fact.  It  seems  to  me  we  ought  not  to  load  down  this 
record  with  your  conclusions,  your  arguments  about  the  matter. 

Rather,  you  should  give  us  the  benefit  of  the  facts.  If  you  will  read 
the  last  thing  you  said,  it  was  clearly  argument. 

Mr.  Alsop.  It  was  my  attempt  to  answer. 

Senator  Smith.  Let's  read  back  the  answer  just  now  at  the  end  of 
his  answer,  just  the  one  last  sentence. 

(The  record  was  thereupon  read  by  the  reporter,  as  follows:) 

Are  we  to  believe  that  the  Communist  leaders  genuinely  desired  the  dismissal 
of  their  favorite  general? 

Senator  Smith.  We  want  the  facts. 

Mr.  Alsop.  That  seems  to  me  responsive  to  Mr.  Morris'  question. 

Mr.  SouRwiNE.  Before  we  go  beyond  that  point,  there  is  something 
I  think  should  be  focused  and  that  goes  back  to  a  previous  colloquy 
which  I  had  with  the  witness. 

I  mean  at  a  time  when  he  had  stated  that  Mr.  Budenz  had  made  the 
assertion  that  the  Stilwell  dismissal  was  sometliing  desired  by  the 
Communists. 

iVt  that  time  the  witness  attempted  to  find  that  statement  in  Mr. 
Budenz'  testimony  and  it  did  not  turn  up  in  Mr.  Budenz'  testimony. 

Now,  the  focus  is  on  the  question  of  whether  the  Communists  de- 
sired the  dismissal  of  General  Stilwell.  Since  Mr.  Budenz  never  said 
they  did,  I  am  wondering  about  the  pertinency  of  this,  particular  testi- 
mony.   It  seems  the  focus  is  off. 

Mr.  Alsop.  I  am  trying  to  show  the  Communists  very  much  did 
not  want  the  dismissal  of  General  Stilwell. 

IMr.  SouRwiNE.  Assuming  you  show  it,  what  does  it  prove  with  re- 
gard to  your  general  thesis  here  ? 

Mr.  Alsop.  It  proves  the  main  act  of  Mr.  Wallace's  mission  in  which 
]\Ir.  Vincent  participated  which  Mr.  Budenz  has  testified  carried  out 
a  Communist  objective  was  something  that  the  Communists  did  not 
want  and  could  not  have  wanted. 

It  seems  to  me  very  pertinent. 

Mr.  Morris.  With  particularity,  Mr.  Alsop,  when  he  came  to  talk- 
ing about  the  Stilwell  release,  he  said  that  they  looked  upon  the  thing 
as  a  wise  compromise? 

Mr.  Alsop.  There  is  a  great  deal  more  evidence  I  would  like  to  put 
in  the  lecord. 

jMr.  Morris.  That  is  what  we  are  waiting  for. 

You  are  reading  now  from  the  Daily  Worker? 

Mr.  Alsop.  I  read  from  the  Daily  Worker. 

Mr.  Morris.  Of  November  1,  1044,  the  Starobin  article? 

]\ir.  Alsop.  There  are  a  series  of  others. 

Mr.  Morris.  That  begins — 

The  sudden  withdrawal  of  Gen.  Joseph  Stilwell  from  his  Burma-China  post 
has  won  outstanding  merit. 


22848— 52— pt.  o 12 


2424  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  Yes,  and  read  it  on. 

Mr.  Morris.  What  part  do  you  want? 

Mr.  Alsop.  The  part  where  it  says,  and  I  will  read  it  for  you : 

An  American  general  who  got  his  four  stars  only  last  August,  is  removed  from 
SL  theater  which  he  knows  well  from  a  country  where  he  has  fought  a  successful 
campaign,  and  Americans  are  concerned.  They  obviously  have  every  right  to 
be  concerned. 

1  continue : 

We  don't  know  the  facts,  of  course,  but  one  more  thing  is  significant.  Vine- 
gar Joe  Stilwell  had  years  of  experience  w^orking  with  the  Chungking  au- 
thorities as  well  as  the  British  India  Command.  He  knows  the  situation 
from  the  Burma-Southern  China  end  of  it.  He  has  not  been  in  the  Commu- 
nist area  of  China  at  all,  yet  he  must  have  arrived  at  the  conclusions  very 
similar  to  those  our  military  mission  in  Yenan  will  reach.  Something  is  rotten 
in  Chungking  and  that  something  stems  from  the  blockade  against  Yenan — 

which  Stilwell  was  working  very  hard,  may  I  interpose,  to  lift. 

Then  he  continues 

Mr.  Morris.  Does  that  not  go  to  establish  Budenz's  testimony  that 
they  looked  upon  it  as  a  wise  compromise  ? 

Mr.  Alsop.  It  does  not,  in  my  opinion. 

Mr.  Morris.  If  something  is  a  wise  compromise,  there  are  some  ad- 
vantages given  up. 

Mr.  Alsop.  Here  he  said : 

You  realize  to  what  depths  the  corruption  and  political  oppression  have 
driven  free  China.  This  is  the  heart  of  the  problem.  It  will  hardly  be  cured 
by  the  withdrawal  of  our  favorite  American  general,  although  this  withdrawal 
may  precipitate  the  changes  that  are  overdue  in  China. 

Mr.  Morris.  Do  you  quote  that  in  support  of,  or  in  opposition  to  ? 

Mr.  Alsop.  I  quote  that  in  opposition  to  _Mr.  Budenz'  testimony. 

I  would  like  to  continue  with  my  analysis. 

Senator  Smith.  I  want  you  to  say  everything  you  want  to  say  and 
present  the  facts.  I  believe  you  say  that  Mr.  Budenz  perjured  him- 
self.    Isn't  that  what  you  said  ? 

Mr.  Alsop.  I  said  he  had  not  told  the  truth. 

Senator  Smith.  You  know  he  was  under  oath  ? 

Mr.  Alsop.  Perjury  is  a  technical,  legal  matter. 

Senator  Smith.  Anything  that  you  want  to  say  bearing  on  that 
point,  I  want  to  give  you  full  leeway,  because  you  have  made  a  se- 
rious charge  against  Mr.  Budenz.  I  want  you  to  have  full*  chance  to 
vindicate  yourself  and  to  condemn  him,  if  you  can. 

My  remark  was  it  seemed  you  make  one  statement  of  fact  a  quasi- 
statement  of  fact  and  then  you  go  into  argument.  The  argument  is 
something  we  want  to  leave  out  of  the  record. 

I  realize  there  will  be  times  when  it  is  hard  to  distinguish. 

In  these  cases  where  you  are  discussing  the  nature  of  the  Commu- 
nist Party  line,  it  is  practically  impossible  to  leave  the  argument  out 
of  the  record. 

Mr.  Alsop.  My  interpretation  of  this  November  1  issue  of  the 
Worker  is  very  simple.  I  suggested  to  the  committee  in  this  issue  of 
the  Worker,  having  been  caught  without  a  clear  party  line,  the  editor, 
Mr.  Budenz,  put  in  a  little  bit  of  everytliing  all  the  way  from  the 
Atkinson  condemnation  of  Stilwell's  dismissal  to  the  main  Starobin 
article  on  the  editorial  page  lauding  General  Stilwell,  to  the  Starobin 
article  on  page  8,  in  which  he  says  that  perhaps  Stilwell's  dismissal 


INSTITUTE    OF   PACIFIC    RELATIONS  1425 

might  be  a  good  thing,  because  it  will  blow  the  roof  off  in  China  and 
force  reforms. 

Mr.  Morris.  Then  at  that  point  will  you  not  concede  that  Joseph 
Starobin  is  the  authority  in  the  Daily  Worker  and  not  Brooks  Atkin- 
son's news  report  ? 

Mr.  Alsop.  Will  you  not  concede 

Mr.  Morris.  Will  you  answer  the  question  ? 

Mr.  Alsop.  I  said  "Yes."  Will  you  not  concede  that  the  article  on 
the  editorial  page  which  describes  General  Stilwell  as  "our  favorite 
general''  is  in  Daily  Worker  usage  a  much  more  important  article  in 
terms  of  instructing  people  as  to  the  party  line  than  the  article  on 
page  8. 

Mr.  Morris.  Should  I  be  sworn,  Mr.  Chairman  ? 

Senator  Smith.  I  do  not  know  that  that  is  up  to  you  to  answer 
that,  Mr.  Morris. 

Mr.  Alsop.  This  is  a  matter  of  common  knowledge. 

Mr.  SouRwiNE.  If  I  may  interject,  I  think  it  will  help,  I  hope  it 
will,  because  the  issues  are  getting  fogged.  We  have  been  down  some 
alleys  a  few  times  this  morning,  but  perhaps  I  should  say  we  have 
been  chasing  upstairs  to  go  after  the  little  boys  in  the  windows  with 
pea  shooters  when  we  should  be  marching  on  down  the  street  with  the 
parade. 

I  would  like  to  get  this  thesis  of  Mr.  Alsop's  laid  out  before  us. 

Mr.  Alsop.  Now  that  we  have  started  this  story,  if  I  may  interject, 
I  would  just  as  soon  end  the  issue  of  what  the  Daily  Worker  said. 

Mr.  SouRwiNE.  I  am  sure  you  would.    I  think  this  would  be  helpful. 

Assuming  that  for  the  sake  of  argument  that  it  is  established  that 
the  Daily  Worker  and  the  Communist  Party  did  not  desire  the  replace- 
ment of  General  Stilwell,  that  would  be  one  of  the  points  you  are 
trying  to  establish  ? 

Mr.  Alsop.  That  would  be  a  very  mild  way  of  putting  a  point  I  am 
trying  to  establish.  I  am  trying  to  make  the  point  that  the  removal 
of  General  Stilwell  which  Mr.  Wallace  recommended,  with  Mr.  Vin- 
cent's concurrence,  was  the  very  last  thing  the  Communist  Party 
desired. 

Mr.  SouRwiNE.  I  am  glad  you  stated  it  that  way.  Assuming  the 
removal  of  Stilwell  is  the  last  thing  they  desired,  and  assuming  that 
Mr.  Vincent  did  have  a  part  in  the  recommendations  made  by  Mr. 
Wallace  in  his  Kunming  cables,  necessarily  in  order  to  establish,  even 
with  those  two  facts,  that  Mr.  Budenz  was  lying,  you  must  also  estab- 
lish that  it  was  the  influence  of  Mr.  Vincent  which  resulted  in' the 
removal  of  General  Stilwell,  or  the  recommendation  for  his  removal. 

Is  that  not  correct  ? 

Mr.  Alsop.  I  don't  think  it  is  quite  an  accurate  way  of  putting  the 
situation. 

Mr.  SouRWiNE.  Just  a  minute,  sir.  Suppose,  Mr.  Alsop,  that  the 
decision  to  convey  to  the  President  the  Generalissimo's  desire  that 
General  Stilwell  be  replaced  had  been  made  by  Mr.  Wallace.  At  that 
moment,  what  would  the  Communist  line  have  been? 

Mr.  Alsop.  I  think  the  Communist  line  at  the  time  of  Mr.  Wallace's 
recommendation  to  the  President  was  quite  opposite  to  Mr.  Wallace's 
recommendation  in  a  most  violent  way. 

I  shall  try  to  prove  that. 


]^426  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SouRWiNE.  I  understand  that.  We  have  had  no  testimony  from 
Mr.  Budenz  that  the  Communist  line  was  in  favor  of,  or  was  not  op- 
posed to  the  removal  of  General  Stilwell. 

Mr.  Alsop.  We  have  had  testimony  from  Mr.  Budenz. 

Mr.  SouRWiNE.  The  record  of  Mr.  Budenz 

Mr.  Alsop.  May  I  finish  my  answer,  Mr.  Sourwine  ? 

We  have  had  testimony  from  Mr.  Budenz  Mr.  Wallace's  mission 
carried  out  the  Communist  objective  under  the  guidance  of  John  Car- 
ter Vincent  who  was  a  member  of  the  Communist  Party. 

I  am  trying  to  show  the  committee  that  it  did  not  carry  it  out. 

Mr.  Sourwine.  You  are  addressing  yourself  entirely  on  the  assump- 
tion that  the  particular  Communist  objective  referred  to  was  the  dis- 
missal of  General  Stilwell. 

I  am  attempting  to  show  there  may  be  another  possibility. 

Mr.  Alsop.  Mr.  Sourwine,  there  may  be  another  possibility.  If  we 
could  get  to  that  in  an  orderly  way,  1  would  like  to  comment  on  it,, 
if  you  feel  it  is  necessary. 

The  subject  before  us  is  the  heart  of  Mr.  Budenz'  testimony,  which 
is  the  Wallace  mission  "carried  out"  a  Communist  objective  and  again 
I  quote : 

toward  which  Mr.  Wallace  was  guided  by  Mr.  Vincent  who  was  a  member  of  the 
Communist  Party. 

I  submit  to  you  that  it  is  quite  irrelevant  whether  Mr.  Budenz  has 
testified,  or  hasn't  testified  about  the  party  line  at  the  time  that  Mr. 
Wallace  was  in  China. 

I  feel  further,  if  I  may  say  so,  that  the  Communist  reaction  to  the 
fait  accompli  of  General  Stilwell's  dismissal  does  not  give  very  much, 
light  on  what  the  party  line  was  at  the  time  when  Mr.  Wallace  made 
his  recommendation. 

Mr.  Sourwine.  What  difference  does  it  make  ? 

Mr.  Alsop.  Since  Mr.  Morris  has  raised  this  question  about  the 
Communist  reaction,  I  think  a  distorted  picture  has  been  given.  I  ara 
trying  to  correct  that  picture. 

'Mr.  Morris.  I  did  not  raise  it.  Mr.  Chairman,  will  the  record  show 
I  did  not  raise  it?  It  is  Mr.  Budenz'  testimony  that  Mr.  Alsop  is- 
endeavoring  to  challenge. 

Mr.  Alsop.  It  was  brought  into  the  hearing  this  morning  by  you. 

Senator  Smith.  It  seems  to  me  that  you  are  challenging  the  testi- 
mony of  Mr.  Budenz.  Manifestly  the  Chair  does  not  know  whether 
Mr.  Budenz  told  the  truth  or  not.  He  was  sworn  here  to  tell  the  truth 
just  like  you  were  sworn  to  tell  the  truth.  I  assume  you  were  sworn 
this  morning.    You  challenge  what  Mr.  Budenz  said. 

Can  you  not  confine  yourself  to  correcting  what  you  say  is  an 
erroneous  statement  by  Mr.  Budenz  without  a  great  deal  of  argument 
and  extraneous  talk  ?    That  is  what  I  am  interested  in,  the  facts. 

Mr.  Alsop.  When  you  are  talking  about  Mr.  Budenz'  testimony^ 
he  is  not  testifying  as  to  fact,  if  I  may  say  so.  He  has  testified  as  to 
the  interpretation  to  be  placed  on  the  Daily  Worker. 

Mr.  Sourwine.  If  Mr.  Budenz  has  not  testified  as  to  fact,  he  cannot 
be  accused  of  perjury. 

Mr.  Alsop.  In  the  specific  passage  that  Mr.  Morris  has  brought  into 
the  hearing  this  morning  Mr.  Budenz  sought  to  show  by  interpreting 
an  article  in  the  Daily  Worker  that  a  certain  thing  was  the  fact. 


INSTITUTE    OF   PACIFIC   RELATIONS  1427 

namely,  that  the  Communists  were  not  displeased  by  the  dismissal  of 
General  Stilwell. 

Mr.  SouRWiNE.  Mr.  Budenz  did  not  attempt  to  show  that,  did  he  ? 

Mr.  Alsop.  It  is  my  understanding. 

Senator  Smith.  You  say  you  read  Mr.  Budenz'  verbatim  testi- 
mony. 

Mr.  Alsop.  I  listened  to  it. 

Senator  Smith.  Were  you  here  the  day  he  testified  ? 

Mr.  Alsop.  Yes ;  I  was,  sir. 

If  it  is  agreed  that  the  Communists  were  deeply  displeased  by  the 
•dismissal  of  General  Stilwell,  then  I  think  we  can  drop  this  whole 
subject. 

Mr.  SouRwiNE.  Mr.  Alsop  and  Mr.  Chairman,  if  the  Chair  please 
for  just  a  moment  now,  the  contention  has  revolved  around  a  statement 
made  by  Mr.  Budenz  which  has  been  read  by  the  witness  several  times 
to  the  effect  that  on  Mr.  Wallace's  mission  he  was  guided  by  two  named 
persons,  Lattimore  and  Vincent,  and,  by  Mr.  Budenz'  statement, 
that  in  the  opinion  of  the  Politburo  they  did  their  job  well. 

Mr.  Alsop  is  attempting  to  challenge  that  on  the  grounds  that  a 
specific  recommendation  as  he  interprets 

Senator  Smith.  Let  me  ask  right  there;  there  is  nothing  in  the 
testimony  that  Mr.  Wallace  was  knowingly  influenced  by  them,  is 
there? 

Mr.  SouRwiNE.  No,  sir ;  there  was  not,  and  that  is  the  point. 

Mr.  Alsop.  Senator,  I  put  it  to  you,  sir 

Senator  Smith.  Let  him  finish  the  question. 

Mr.  SouRwiNE.  If  you  are  challenging  Mr.  Budenz'  statement  that 
the  Politburo  was  satisfied  with  the  guidance  given  Mr.  Wallace,  is 
it  not  necessary,  in  order  for  you  to  successfully  challenge  that,  to 
show  that  there  was  nothing  accomplished  by  Mr.  Lattimore  and/or 
Mr.  Vincent  which  was  in  favor  of  the  Communists  ? 

Do  you  feel  you  can  successfully  challenge  Mr.  Budenz'  statement 
by  showing  that  Mr.  Wallace  did  something  that  was  not  in  complete 
accord  with  the  Communist  line? 

Mr.  Alsop.  I  think  I  can  successfully  challenge  Mr.  Budenz'  state- 
ment by  showing  that  the  chief  result • 

Mr.  SouRwiNE.  No,  answer  my  question. 

Mr.  Alsop.  I  am  trying  to  answer  your  question. 

Mr.  SouRwiNE.  You  are  not  trying  to  answer  it ;  you  are  trying  to 
evade  it. 

Mr.  Alsop.  I  am  not  trying  to  evade  it.  If  you  will  allow  me  to 
<:-omplete  my  sentence,  I  believe  you  will  find  I  am  trying  to  answer  it. 

Senator  Smith.  Will  the  reporter  read  the  question  back? 

(The  question  was  read  back  by  the  reporter.) 

Mr.  Alsop.  I  submit  to  you,  Mr.  Chairman,  that  if  you  can  show 
the  main  result  of  the  Wallace  mission  was  a  profoundly  anti-Com- 
munism act,  you  successfully  challenge  Mr.  Budenz'  evidence. 

Mr.  SouRWiNE.  Not  unless  you  show  that  everything  Mr.  Wallace 
did  was  the  result  of  the  influence  of  Mr.  Vincent  or  Mr.  Lattimore, 
If  Mr,  Wallace  did  anything  independently  on  his  own,  if  he  was 
not  a  complete  stooge  of  the  Communists  or  a  Communist  agent — • 
and  no  one  is  alleging  that  and  no  one  has  alleged  it — then  what  you 
have  just  said  is  not  the  logical  fact. 


1428  INSTITUTE    OF    PACIFIC    RELATIONS 

Mr.  Alsop.  Mr.  Vincent  participated  and  joined  in  this  recom- 
mendation for  the  dismissal  of  General  Stilwell.  This  was  the  extent 
of  guidance  that  Mr.  Vincent  gave  Mr.  Wallace. 

Mr.  SouRWiNE.  That  is  different  testimony.  If  that  was  the  com- 
plete extent  of  the  guidance  Mr.  Vincent  gave  Mr.  Wallace,  then 
you  are  coming  around  to  the  theory  which  was  advanced,  to  wit^ 
that  there  was  nothing  accomplished  which  would  have  been  pleasing 
to  the  Communists. 

Mr.  Alsop.  If  you  will  excuse  me,  Mr.  Sourwine,  I  am  saying 
what  was  accomplished  with  Mr.  Vincent's  participation  and  concur- 
rence was  profoundly  displeasing  to  the  Communists. 

Mr.  SouKWiNE.  Put  it  this  way :  If  Mr.  Vincent  through  his  influ- 
ence on  Mr.  Wallace  accomplished  anything  which  was  pleasing  to  the 
Communists,  then  Mr.  Budenz'  statement  cannot  be  said  to  be  per- 
jury.   Is  that  not  accurate  ? 

Mr.  Alsop.  Could  you  repeat  that?  You  are  getting  so  compli- 
cated, Mr.  Sourwine,  I  did  not  understand  your  question. 

Senator  Smpih.  I  am  certain  I  do  not  understand  either  one  of  you. 

Do  you  want  the  question  read  back,  Mr.  Sourwine  ? 

Mr.  Sourwine.  I  do  not  desire  it. 

Senator  Smith.  Will  the  reporter  read  it  back? 

(The  question  was  read  by  the  reporter.) 

Mr.  Alsop.  I  would  not  say  tliat  that  was  accurate  because  it  is  a 
substantial  disproof  of  Mr.  Budenz'  statement  that  Mr.  Vincent 
guided  Mr.  Wallace  toward  the  Communist  objective.  The  principal 
guidance  that  Mr.  Vincent  gave  Mr.  Wallace  was  toward  a  profoundly 
anti-Communist  objective. 

Mr.  Sourwine.  There  was  no  named  objective,  was  there,  Mr. 
Alsop? 

Mr.  Alsop.  Well,  Mr.  Sourwine,  what  I  am  trying  to  show  is  that  the 
main  result  of  Mr.  Wallace's  mission  was  profoundly  anti-Communist. 

I  think  if  you  will  permit  me  to  proceed  with  the  presentation  of  the 
very  large  quantity  of  documentation  that  I  have,  you  will  be  con- 
vinced. 

Mr.  Sourwine.  Do  you  contend  that  Mr.  Wallace's  mission  and  its 
results  were  controlled  entirely  and  shaped  entirely  by  Mr.  Vincent? 

Mr.  Alsop.  I  do  not  so  contend.  I  think  Mr.  Budenz  grossly  exag- 
gerated in  that  report. 

Mr.  Sourwine.  If  Mr.  Vincent  did  not  control  what  Mr.  Wallace 
did,  then  nothing  that  Mr.  Wallace  did  can  be  attributed  to  Mr.  Vin- 
cent's influence,  can  it  ? 

Mr.  Alsop.  That  is  a  question  to  me,  Mr.  Sourwine  ? 

Mr.  Sourwine.  Yes,  sir. 

Mr.  Alsop.  I  cannot  possibly  agree  with  that  because  Mr.  Vincent 
did  in  fact  join  in  guiding  Mr.  Wallace  or  influencing  Mr.  Wallace 
toward  a  profoundly  anti-Communist  act.  This  is  the  essence  of  the 
whole  situation. 

Mr.  Morris.  Mr.  Chairman,  I  think  it  might  be  pertinent  to  bring 
this  out  at  this  time  since  we  are  talking  about  Mr.  Wallace. 

Mr.  Alsop,  did  you  testify  in  executive  session  that  Henry  Wallace 
was  for  a  period  of  time  the  stooge  of  the  American  Communists  ? 

Mr.  Alsop.  Yes ;  I  have  written  that  publicly. 

Mr.  Morris.  Do  you  contend  he  was  not  a  stooge  for  the  Communists 
at  this  particular  time? 


INSTITUTE    OF   PACIFIC   RELATIONS  1429 

Mr.  Alsop.  Because  I  saw  him  not  being  a  stooge. 

Mr.  Morris.  The  time  he  was  a  stooge  was  a  later  time  ? 

Mr.  Alsop.  Yes. 

May  I  proceed  with  this  very  complex  presentation  ?  I  am  desper- 
ately sincere.  I  completely  believe  in  the  committee's  good  faiths 
These  are  very  complicated  facts,  and  miless  they  are  presented  in  an 
orderly  manner,  it  is  very  hard  for  them  to  be  related  to  one  another. 
I  have  made  rough  notes  for  the  specific  purpose  of  presenting  it  to  th& 
committee  in  the  least  time-consuming  way  possible. 

Senator  Smith.  As  I  understand,  Mr.  Alsop,  you  requested  to  be- 
heard  by  the  committee  ? 

Mr.  Alsop.  That  is  correct. 

Senator  Smith.  So  I  consider  that  to  be  slightly  different  from  a 
person  we  have  subpenaed  here  to  ask  specific  questions.  Unless  there- 
are  some  questions  from  Senator  O'Conor,  we  will  let  Mr.  Alsop  pro- 
ceed in  the  way  he  wishes  to  proceed.  Mr.  Sourwine  and  Mr.  Morris 
can  make  notes  of  questions  they  want  to  come  back  and  ask  him 
as  on  cross-examination. 

Senator  O'Conor.  I  quite  agree,  Mr.  Chairman.  I  think  that  is- 
the  orderly  way.  I  think  it  will  enable  us  expeditiously  to  get  to  the 
end.  I  did,  however,  understand  Mr.  Alsop  to  suggest  himself  that 
he  would  welcome  interrogatories  at  any  time. 

Senator  Smith.  I  know,  Mr.  Alsop,  in  the  first  place  if  we  are  go- 
ing to  examine  witnesses  that  we  subpena  to  get  precise  facts  from^ 
the  committee's  counsel  has  to  do  it  in  the  way  that  seems  the  most 
logical  to  him  to  bring  out  the  facts  that  he  wishes  to  ascertain. 

B}^  the  same  token,  when  you  come  in  asking  to  be  heard  we  want 
to  give  you  a  chance  to  express  in  your  own  way  and  as  you  deem 
logical — whether  in  fact  it  is  logical  or  not — to  develop  the  facts  you 
are  going  to  give  us.  It  is  perfectly  all  right  with  me  and  Senator 
O'Conor.  We  do  not  want  to  load  the  record  down  with  a  lot  of 
extraneous  arguments  and  conclusions.  We  want  as  near  facts  a& 
can  be  given. 

Mr.  Alsop.  I  will  attempt  not  to. 

Mr.  Morris.  May  I  point  out  that  tlie  reason  for  my  inquisition  was 
that  Mr.  Alsop  is  making  frequent  references  to  General  Stilwell,  and 
with  respect  to  that  particular  part  of  Budenz'  statement  that  related 
to  General  Stilwell,  I  wanted  the  testimony  read  into  the  record. 

Senator  Smith.  I  was  not  here  when  that  took  place.  As  I  under- 
stood, there  was  some  question  as  to  whether  or  not  Mr.  iVlsop  was 
referring  to  testimony  actually  in  the  record  by  Mr.  Budenz. 

Mr.  Morris.  That  is  right.  When  we  talk  about  General  Stilwell 
we  should  address  ourselves  to  Budenz'  Stilwell  testimony. 

Senator  Smith.  All  right,  start  from  here. 

Mr.  Alsop.  I  have  already  shown.  Senator,  that  on  the  basis  of 
General  Stilwell's  own  papers,  that  at  that  time  when  Mr.  Wallace  rec- 
ommended General  Stilwell's  dismissal,  with  the  concurrence  and  ap- 
proval of  Mr.  Vincent,  with  the  encouragement,  I  might  say,  of  Mr. 
Vincent,  General  Stilwell  believed  that  the  only  cure  for  China's 
troubles  was  "to  eliminate"  Chiang  Kai-shek  and  that  he  regarded 
the  Chinese  Communists  as  "the  only  hope"  of  the  Chinese  masses. 

This  is  General  Stilwell's  attitude  which  he  was  expressing  to  the 
home  authorities  and  which  he  encouraged  his  staff — to  which  I  can 


1430  INSTITUTE    OF   PACIFIC   RELATIONS 

testify  from  personal  knowledge  because  tliey  used  to  say  they  were 
encouraged  by  him — to  disseminate  throughout  Chungking,  with 
grave  damage  to  the  Generalissimo's  prestige. 

Furthermore,  and  this  is  the  crucial  point.  General  Stilwell,  the 
man  whose  dismissal  Mr.  Wallace  recommended,  had  a  plan  for  giving 
practical  effect  to  his  preference  for  the  Chinese  Communists,  which 
was  maturing  just  at  the  moment  when  Mr.  Wallace  reached  China. 

In  Mr.  Wallace's  cable  the  committee  would  have  noted  that  the 
Japanese  offensive  was  inflicting  disastrous  defeats  on  the  Generalis- 
simo's armies  in  east  China  and  these  defeats  were  weakening  the 
generalissimo's  position.  General  Stilwell's  plan  was  to  exploit  this 
weakness  of  Chiang  Kai-shek  in  order  to  extort  for  himself  a  further 
great  increase  of  power  in  China. 

General  Stilwell  further  intended  to'  use  this  increase  of  his  own 
power  in  China  in  order  to  give  American  arms  to  the  Chinese  Com- 
munists. He  went  to  very  great  lengths  to  further  this  plan  of  his  to 
increase  his  own  power  in  order  to  arm  the  Communists. 

I  can  recall,  for  example,  an  occasion  in  July  when  General  Chen- 
nault  urgently  asked  General  Stilwell  for  permission  to  divert  1,000 
tons  of  Fourteenth  Air  Force  ammunition  and  other  supplies  to  the 
hard-pressed,  naked,  and  exhausted  Chinese  troops  who  were  fighting 
the  Japanese  in  the  eastern  provinces. 

General  Stilwell's  chief  of  staff  replied  after  long  delay  that  the  boss 
was  working  on  a  proposition  which  might  give  this  spot  (namely  the 
generalissimo's  government)  a  real  face-losing  and  concluded  that 
while  this  proposition  was  pending  the  Chinese  armies  could  be 
granted  no  aid. 

I  should  interpose  here.  Senator,  that  I  testify  here  from  my  own 
knowledge.  We  were  so  astonished  by  this  telegram  refusing  aid  to 
the  Chinese  armies  in  order  to  promote  this  proposition  that  we  had 
inquiries  made  in  Chungking  and  we  learned  from  official  sources  in 
General  Stilwell's  staff  that  General  Stilwell  was  planning  to  ask 
for  this  great  increase  in  power,  that  he  thought  he  would  be  more 
likely  to  get  the  increase  in  power  if  the  generalissimo's  position  were 
weakened  by  defeat  and  therefore  he  would  not  aid  the  Chinese 
armies. 

Senator  Smith.  Now  were  the  Chinese  ai-mies  to  which  you  refer 
the  Nationalist  forces  or  the  Communist  forces  ? 

Mr.  Alsop.  They  were  the  Chinese  Nationalist  forces. 

Senator  Smith.  Very  clearly  ? 

Mr.  Alsop.  Yes;  and  at  that  time  they  were  engaged  in  a  great 
battle  in  east  China  against  the  Japanese,  and  the  defeats  in  east 
China,  as  Mr.  Wallace's  cables  show,  had  gravely  undermined  the 
political  and  economic  strength  of  the  generalissimo's  regime. 

I  should  say  that  when  I  quote  this  telegram  I  do  so  from  memory. 
I  was  so  shocked  at  the  exact  language  it  stuck  in  my  mind  for  these 
7  years.  I  think  it  is  verbatim.  I  suppose  the  War  Department  files, 
if  you  dug  through  them,  would  show  it. 

That  summer  General  Stilwell's  prestige  at  home  had  been  greatly 
increased  by  his  victory  in  Burma,  while  the  generalissimo's  stand- 
ing had  suffered  greatly  from  the  east  China  disaster,  which  General 
Stilwell  had  in  turn  painted  in  the  darkest  light  of  the  American 
Government,  placing  the  blame  on  Chiang  Kai-shek. 


INSTITUTE    OF   PACIFIC   RELATIONS  1431 

Thus,  although  President  Roosevelt  had  always  been  uneasy  about 
General  Stilwell's  qualifications,  as  shown  by  his  earlier  willingness, 
to  recall  him  if  the  generalissimo  so  requested,  the  President  was  in- 
duced in  the  summer  of  1944  to  ask  the  generalissimo  to  grant  to  Gen- 
eral Stilwell  the  desired  large  increase  in  his  powers  in  China. 

Major  General  Hurley  as  was  sent  to  Chungking  as  the  President's 
"personal  representative"  to  secure  Chiang  Kai-shek's  consent  to  this 
increase  in  General  Stilwell's  powers. 

Senator  Smith,  How  do  you  know  that  last  statement  to  be  a  state- 
ment of  fact?  Were  you  there  or  is  it  something  that  Major  General 
Hurley  said  ? 

Mr.  Alsop.  I  was  there.  I  heard  about  it  from  General  Hurley.  I 
also  heard  about  it  later  from  Dr.  Soong,  who  participated  in  the 
negotiations. 

Senator  Smith.  I  am  pointing  that  question  to  what  you  heard  yes- 
terday about  introducing  evidence  here  that  is  statements  of  some- 
body that  has  not  been  sworn  to  by  anybody.  I  want  to  make  certain 
that  you  did  know  about  that  to  your  own  knowledge  or  sufficiently 
close  to  your  knowledge  that  we  should  accept  it. 

Mr.  Alsop.  Dr.  Soong  gave  me  a  full  account  of  what  happened 
at  this  time,  and  he  was  one  of  the  participants  in  the  negotiations 
before  I  left  China  in  1945. 

In  the  Hurley-Chiang  negotiations  the  great  sticking  point  was  the 
control  of  military  lend-lease,  for  Stilwell  needed  to  have  full  author- 
ity over  lend-lease  distribution  in  order  to  be  able  to  arm  the  Chinese 
Communists. 

A  Stilwell  diary  entry,  dated  September  16,  1944,  tells  the  story: 

The  Generalissimo  insists  on  control  of  lend-lease,  our  stuff  that  we  are  giving 
him.  T.  V.  says  that  we  must  remember  the  dignity  of  a  great  nation,  which 
would  be  affronted  if  I  controlled  the  distribution. 

"I''  being  General  Stilwell — 

Pat  Hurley  told  him,   "Horsefeathers.    Remember,  Dr.   Soong" — 

here  he  is  quoting  General  Hurley — 

"that  is  our  property.  We  made  it  and  we  own  it  and  we  can  give  it  to 
whom  we  please."  Hooray  for  Pat.  If  the  Generalissimo  controls  distri- 
bution, I — 

again  being  General  Stilwell — 

am  sunk.  The  Reds  will  get  nothing.  Only  the  Generalissimo's  henchmen  will 
be  supplied,  and  my  troops — 

here  he  was  referring  to  the  personal  Chinese  force  under  his  general 
command — 

will  suck  the  hind  teat. 

A  few  days  earlier  Hurley  had  succeeded  in  getting  for  Stilwell  the 
desired  grant  of  great  additional  power,  but  a  personal  crisis  between 
General  Stilwell  and  the  Generalissimo  fortunately  blew  up  at  the 
last  moment  causing  the  Generalissimo  to  change  his  mind  completely 
and  to  ask  the  President  for  General  Stilwell's  recall. 

I  should  say  here  that  General  Hurley,  having  finally  observed 
General  Stilwell's  real  method  of  dealing  with  the  Generalissimo,  then 
supported  the  request  for  General  Stilwell's  recall. 


1432  INSTITUTE    OF   PACIFIC   RELATIONS 

On  September  26,  after  liis  recall  liad  been  requested,  General  Stil- 
•well  wired  the  Joint  Chiefs  of  Staff,  and  here  I  quote  from  the  State 
Department  white  paper,  in  which  these  papers  do  appear : 

Chiang  Kai-shek  has  no  intention  of  making  further  eiforts  to  prosecute  the 
war.  He  himself  is  the  main  obstacle  to  the  unification  of  China  and  her 
cooperation  in  a  real  effort  against  Japan.  I  am  now  convinced  the  United 
States  will  not  get  any  real  cooperation  while  Chiang  Kai-shek  is  in  power. 

Later,  after  he  had  been  dismissed  and  returned  to  Washington, 
General  Stilwell  concluded  his  final  official  report  to  the  War  De- 
partment by  advising  an  American  policy  in  China  of — 

■exerting  pressure  on  Chiang  Kai-shek  to  cooperate  and  achieve  national  unity 
and  if  he  proved  unable  to  do  this,  then  supporting  those  elements  in  China 
which  gave  promise  of  such  development. 

Just  which  elements  General  Stilwell  referred  to  may  be  guessed 
from  the  curious  appearance  in  the  first  issue  of  Johannes  Steel's 
fellow-traveling  report  on  World  Affairs  of  a  letter  that  General 
Stilwell  wrote  on  April  16, 1946,  shortly  before  he  died. 

In  this  letter  General  Stilwell  declared  that  he  itched — 

to  throw  down  my  shovel  and  get  over  there  and  shoulder  a  rifle  with  Chu  Teh. 

For  the  committee's  information,  Chu  Teh  was  the  most  conspicuous 
Communist  commander  actually  engaged  in  the  civil  war  against  the 
Chinese  Nationalists. 

I  no  longer  have  this  letter  of  General  Stilwell's,  which  was  origi- 
nally included  in  the  Steel  report,  although  the  committee's  research 
staff  can  no  doubt  secure  one,  but  I  offer  for  the  record  Johannes 
Steel's  commentary  including  the  passage  I  have  quoted,  together 
Avith  the  pertinent  excerpts  from  General  Stilwell's  wire  to  the  Joint 
Chiefs  of  Staff  and  a  report  to  the  War  Department  which  appear  in 
full  in  the  State  Department's  white  paper;  the  pertinent  excerpts 
from  the  Stilwell  papers  including  many  which  I  have  not  burdened 
the  committee's  time  with;  and  a  copy  of  Stilwell's  intelligence  re- 
port in  1938  taken  from  the  Whittaker  Chambers'  pumpkin  papers. 

These  documents  tell  Stilwell's  story  succinctly,  clearly,  and  ir- 
refutably. 

I  must  say  to  the  committee  in  all  honesty  and  frankness  I  do  not 
for  one  moment  believe  that  the  story  these  documents  tell  is  one  of 
active  conscious  disloyalty  to  the  United  States.  Here,  Mr.  Chair- 
man, if  I  may,  I  am  engaging  in  an  opinion  because  I  don't  want  to 
blacken  the  name  of  a  dead  man. 

There  is  a  distinction  too  little  made  nowadays  between  disloyalty 
and  bad  judgment.  General  Stilwell  was  a  passionately  loyal  Ameri- 
can, a  brave  leader  of  troops  in  the  field,  a  man  with  many  fine  quali- 
ties that  commanded  confidence  from  many  different  kinds  of  men. 
His  weaknesses,  which  did  not  appear  on  the  surface  wdien  he  was 
selected  to  command  in  China,  because  Gen.  Hugh  Drum  did  not 
want  to  go  out,  were  an  astonishing  capacity  for  hatred  and  the  worst 
imaginable  political  judgment. 

Because  of  his  bad  judgment.  General  Stilwell  could  see  no  Ameri- 
•can  interest  in  China  except  to  use  the  Chinese  to  "beat  the  Japs,"  a 
favorite  phrase  of  his.  Because  he  continually  disagreed  with  the 
Generalissimo  on  how  the  Chinese  were  to  be  used  to  beat  the  Japs, 
he  came  to  hate  Chiang  Kai-shek  with  a  consuming  hatred,  which 
is  revealed  in  what  he  wrote  p-bout  liim. 


INSTITUTE    OF    PACIFIC   RELATIONS  1433 

Because  lie  so  hated  Chianp;  Kai-shek,  because  he  imasrined  the 
Chinese  Communists  were  really  fighting  the  Japanese,  and  because 
he  could  see  no  long-range  American  interest  in  China,  he  came  to 
Tvish  for  and  even  to  work  for  the  triumph  of  the  Chinese  Communists 
in  China,  and  in  all  this  General  Stilwell  largely  carried  most  mem- 
bei's  of  his  staff  along  with  him,  and  again  I  feel  they  were  completely 
loyal,  as  theater  commanders  are  apt  to  carry  along  their  staffs  in 
wartime. 

At  the  same  time  the  committee  must  see  from  the  evidence  already 
placed  in  the  record  that  General  Stilwell  was  an  invaluable  and  in- 
calculable and  irreplaceable  asset  to  the  Chinese  Communists.  This 
was  the  man  whose  dismissal  from  China  was  the  main  act  of  the 
AVallace  mission  to  China  which  is  supposed  to  have  attained  the 
Communist  objective  under  the  guidance  of  Mr.  Vincent,  who  con- 
curred in  the  recommendation  that  General  Stilwell  be  dismissed. 

Senator  Smith.  Mr.  Alsop,  with  reference  to  the  statements  you 
have  made,  if  General  Stilwell  were  living  today,  do  you  suppose  he 
would  agree  with  your  statements  on  that  or  deny  them  ? 

Mr.  Alsop.  The  damaging  statements  I  have  made  on  Stilwell  are 
taken  from  papers  he  has  actually  written.  I  think  he  would  certainly 
say  he  was  a  loyal  American. 

Senator  Smith.  Did  he  say  he  was  working  for  the  Communist 
<?ause  over  there  in  China?    Did  he  ever  make  that  statement? 

Mr.  Alsop.  Senator,  he  desired  to  arm  the  Chinese  Communists, 
and  he  wrote  that  the  only  cure  for  China's  trouble,  and  here  I  quote, 
^'was  to  eliminate  Chiang  Kai-shek,"  and  he  also  wrote,  and  again 
I  quote,  "the  only  hope  of  the  Chinese  mass  was  the  Chinese 
Communists." 

You  take  it  all  together,  and  I  think  you  have  a  very  consistent 
picture  that  should  appeal  to  your  legal  mind. 

Senator  Smith.  Do  you  have  any  evidence  that  he  did  anything 
for  the  purpose  of  helping  the  Chinese  Communists  control  China  ? 

Mr.  Alsop.  Senator,  I  think  that  offering  to  arm  the  Chinese  Com- 
munists and  refusing  to  arm  the  Generalissimo  is  about  as  direct  a 
contribution  as  you  could  possibly  make  to  that. 

Senator  Smith.  That  might  have  been  because  of  his  hatred  of 
Chiang  Kai-shek.  Sometimes  you  hate  somebody  so  badly  that  you 
are  Avilling  to  do  something  against  somebody  you  do  not  hate  quite 
as  bad. 

Mr.  Alsop.  I  departed  from  my  agreement  with  you,  sir,  to  in- 
dulge in  commentary  in  order  to  say  that  General  Stilwell  in  my 
opinion  was  a  passionately  loyal  American  who  did  not  understand 
the  political  significance  of  this  policy  that  he  was  developing. 

Senator  Smith.  There  were  a  great  many  other  Americans,  and 
some  very  prominent  ones,  who  agreed  thatChiang  Kai-shek  was  not 
handling  his  forces  or  the  supplies  we  sent  him  in  a  proper  manner. 

Mr.  Alsop.  It  was  all  perfectly  understandable  except  that  I  think 
in  the  light  of  the  record  you  have  to  agree  that  General  Stilwell 
Avas  a  very  major  Communist  asset  in  China.  That  is  the  only  point 
I  am  trying  to  m^ake. 

Mr.  Morris.  Which  point,  you  understand,  is  not  in  issue  here  be- 
cause it  is  conceded  by  all  parties. 

Mr.  Alsop.  There  is  further  documentary  evidence  of  a  very  im- 
pressive kind  for  the  position  that  I  have  put  forward,  Mr.  Chairman. 


1434  INSTITUTE    or   PACIFIC   RELATIONS 

I  refer  to  a  very  remarkable  letter  from  Maj.  Gen.  C.  L.  Chennault 
dated  July  6,  1945,  requesting  General  Wedemeyer  to  relieve  him  of 
command  in  China. 

I  should  like  to  give  this  letter  to  the  chairman  because  it  is  a  per- 
sonal and  unhappy  letter,  and  it  refers  to  a  lot  of  ugly  ghosts  from 
the  past,  and  I  don't  think  it  ought  to  go  in  the  record  except  where  the 
passages  are  pertinent. 

Senator  Smith.  I  would  have  to  have  counsel  for  the  committee 
to  pass  on  whether  or  not  there  is  anything  pertinent  here  that  ought 
to  be  put  in  the  record.  Now  I  do  not  think  you  should  offer  it  unless 
you  are  willing  to  have  the  whole  thing  go  in  the  record  if  it  appears 
pertinent. 

Mr.  Alsop.  In  that  case  I  will  withdraw  it. 

Senator  Smith.  I  do  not  want  the  responsibility  of  saying  whether 
it  should  be  put  in  or  not. 

Mr.  Alsop.  It  is  a  sad  document  with  much  that  is  irrelevant  to 
this  inquiry.  As  I  understand  it,  your  committee  does  not  want  a  lot 
of  unnecessary  personality. 

If  I  may,  since  I  drafted  the  letter  for  General  Chennault,  I  would 
like  to  testify  as  to  the  pertinent  passages.     Is  that  permissible  ? 

Senator  Smith.  I  do  not  think  it  is  unless  you  are  going  to  offer 
the  letter  for  us  to  examine  to  decide  whether  or  not  we  think  there 
are  other  pertinent  passages.  Manifestly  if  you  are  going  to  offer 
one  part,  we  ought  to  have  a  chance  to  see  it  and  decide  whether  or 
not  another  part  is  pertinent. 

Mr.  Alsop.  Well,  I  withdraw  it.  I  don't  think  it  is  necessary  to 
sustain  the  point  any  further  that  General  Stilwell  was  of  great  value 
to  the  Communists  in  China. 

Mr.  Morris.  In  that  connection,  Mr.  Alsop,  just  to  aid  you  in  that 
narrative,  you  wrote  in  the  Saturday  Evening  Post  of  January  7, 
1950,  the  following  passage  on  page  lY : 

Throughout  the  fateful  years  in  China,  the  American  representatives  there 
actively  favox-ed  the  Chinese  Communists.  They  also  contributed  to  the  weak- 
ness, both  political  and  military,  of  the  National  Government.  And  in  the  end 
they  came  close  to  offering:  China  up  to  the  Communists,  like  a  trussed  bird  on 
a  platter,  over  4  years  before  the  eventual  Communist  triumph. 

Was  Mr.  Vincent  one  of  the  American  representatives  indicated 
in  that? 

Mr.  Alsop.  Mr.  John  Carter  Vincent  had  no  part  in  this  at  all. 

Mr.  Morris.  Who  were  the  American  representatives  ? 

Mr.  Alsop.  If  you  will  read  the  rest  of  that  article,  you  will  find 
that  the  article  concerns  General  Stilwell  almost  exclusively,  and  this 
was  a  description  of  General  Stilwell's  plan. 

There  is  a  very  false  impression  that  has  got  abroad  that  the  State 
Department  and  the  representatives  in  the  State  Department  had 
very  much  influence  on  American  policy  in  China.  Actually  they  had 
almost  none. 

I  can  recall  Ambassador  Gauss  telling  me— T  am  sure  he  was  ex- 
aggerating greatly,  but  it  indicates  the  mood  in  which  they  lived — 
that  he  sent  a  report  every  spring,  and  he  sent  them  a  message  the 
next  January  reminding  them  that  he  had  been  right,  and  that  was  as 
far  as  he  troubled  to  go  because  he  knew  it  wasn't  any  use  at  all. 

Mr.  Vincent  during  this  period  under  discussion  was  in  China  very 
briefly  or  relatively  briefly,  to  my  knowledge — he  may  have  been  there 


INSTITUTE    OF    PACIFIC    RELATIONS  1435 

earlier — in  the  Chungking  Embassy.  He  was  removed  and  replaced 
by  Mr.  George  Acheson  long  before  the  Chiang-Stilwell  relationship 
had  become  absolutely  critical.  I  think  he  left  in  the  winter  of  1943, 
and  1944  was  the  crucial  year  referred  to  in  this  passage  that  you  have 
just  introduced,  which  states  more  accurately  than  I  can,  giving  testi- 
mony in  this  manner,  the  real  effects  of  General  Stilwell  in  China. 

Mr.  Morris.  "V^Hien  you  say  the  American  representatives  there,  pre- 
cisely whom  do  you  mean  ? 

Mr.  Alsop.  I  mean  Stilwell  and  his  staff. 

Mr.  Morris.  Who  was  on  his  staff'  ? 

Mr.  Alsop.  General  Stilwell  had,  I  think,  six  staff's,  Mr.  Morris. 

Mr.  Morris.  To  whom  are  you  referring  when  you  make  the  state- 
ment ? 

Mr.  Alsop.  I  meant  General  Stilwell  and  his  staff. 

Mr.  Morris.  Will  you  name  the  staff  ? 

Mr.  Alsop.  I  can't  possibly  name  his  staff.    He  had  six  staffs. 

Senator  Smith.  How  do  you  know  his  staffs  were  included  in  this 
group  if  you  did  not  know  them  ? 

Mr.  Alsop.  Mr.  Chairman,  I  was  there  at  the  time. 

Senator  Smith.  But  that  is  a  statement  of  fact  that  you  made  in 
this  article.  Now  Mr.  Morris  is  asking  you  who  were  the  individuals 
to  which  you  referred.  Now  I  think  that  is  something  you  ought  to  be 
able  to  tell  us. 

Mr.  Alsop.  General  Stilwell's  chief  staff  officers  in  Chungking  at 
the  time  under  reference  were  General  Hearn,  who  sent  the  telegram 
I  have  already  quoted  from  about  the  proposition,  and  General  Ferris, 
who  was  a  rather  meaningless  man.  Most  of  them,  Mr.  Chairman, 
were  people — in  fact,  all  of  them  were  people — who  simply  did  exactly 
what  General  Stilwell  told  them. 

Senator  Smith.  He  is  asking  you  who  are  the  parties  to  which  you 
referred.  I  think  that  is  a  fair  question.  You  have  made  a  statement 
in  a  written  article  in  which  you  have  said,  "The  American  representa- 
tives." Who  are  those  persons  to  which  you  referred  besides  the  ones 
you  mentioned  ? 

Mr.  Morris.  In  aid  of  Mr.  Alsop's  memory,  I  should  like  to  point  out 
on  that  same  page,  page  IT,  he  points  out  that — 

It  resulted  in  political  intelligence  so  bad  that  Stilwell's  chief  political  adviser, 
John  P.  Davies,  Jr.,  once  seriously  accused  the  Generalissimo  of  traffic  with  the 
Japanese,  on  the  odd  authority  of  the  vice  chairman  of  the  Chinese  Communist 
Party,  Chou-En-lai. 

Therefore,  you  are  clearly  talking  about  political  intelligence,  are 
you  not  ? 

Mr.  Alsop.  I  am  not  talking  about  political  intelligence  at  all,  Mr. 
Morris.  Your  deductions  are  very  far-fetched  indeed.  I  am  talk- 
ing about  the  over-all  effect  of  General  Stilwell  and  his  staff'. 

Now  that  you  have  brought  Mr.  Davies  in,  if  you  will  allow  me  to 
say,  the  most  gross  injustice  has  been  done  to  Mr.  Davies  and  also  to 
Mr.  Service,  not  in  the  sense  of  saying  that  their  policy  was  wrong, 
because  I  cannot  say  that  their  policy  was  wrong  because  I  took  the 
lead  in  fighting  it,  and  not  in  the  sense 

Senator  Smith.  Now  are  we  going  afield  when  we  get  into  those 
names  and  what  they  did?  I  think  we  had  better  stick  to  the  subject 
we  have  before  us.  I  should  like  to  have  you  tell  Mr.  Morris  who 
the  persons  are  to  whom  you  referred. 


1436  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  I  referred  to  General  Stilwell  and  Ms  whole  staff,  in- 
cluding, of  course,  his  political  advisers. 

Senator  Smith.  Now,  can  you  tell  us  who  they  were  ? 

Mr.  Alsop.  His  political  advisers  shifted  from  time  to  time.  Mr. 
Davies  and  Mr.  Service  were  the  chief  ones. 

Senator  Smith.  If  you  make  a  statement  of  that  sort,  do  you  not 
think  the  men  wlio  were  on  iiis  staff  should  have  a  chance  to  be  called 
here  to  say  what  they  did  ? 

Mr.  Alsop.  Mr.  Morris  made  the  statement. 

Senator  Smith.  But  it  is  your  statement. 

Mr.  Alsop.  It  is  a  magazine  article  that  I  wrote  some  time  ago.  I 
particularly  did  not  want  him  to  introduce  Mr.  Davies  and  Mr.  Service 
because  that  is  a  separate  and  very  complex  subject  all  of  its  own,  and 
I  think  they  were  also,  like  General  Stilwell,  passionately  loyal  but 
mistaken  Americans. 

Now  a  man  is  not  to  be  denounced  as  disloyal  because  he  has  made  a 
mistake.  It  is  a  very  unpleasant  thing.  It  is  not  relevant  to  tJie 
inquiry. 

Senator  Smith.  Did  you  not  say  in  this  article  in  the  Saturday 
Evening  Post  that — 

The  main  contributors  were  Stilwell  himself,  John  Davies,  and  probably 
Davies'  assistants,  John  S.  Service  and  Raymond  Ludden. 

Mr.  Alsop.  Ludden  was  also  one  of  his  political  advisers. 

Senator  Smith.  Now  can  you  think  of  any  other  names  of  those 
on  his  staff  that  you  referred  to  in  this  article  i 

Mr.  Alsop.  I  referred  to  General  Hearn  and  others. 

Senator  Smith.  Who  else? 

Mr.  Alsop.  I  referred  to  General  Dorn.  He  was  a  strongly  preju- 
diced man.     There  was  a  whole  series  of  them. 

I  think  it  is  very  unfortunate,  Mr.  Chairman,  to  bring  these  men's 
names  into  this  open  hearing  because  I  do  not  think  they  were  dis- 
loyal. I  thought  they  were  very  mistaken.  I  testified  I  did  not  think 
that  General  Stilwell,  who  completely  dominated  all  of  them,  as  dis- 
loyal. I  thought  that  he  was  mistaken.  The  source  of  their  error 
was  General  Stillwell's  error. 

Senator  Smith.  Do  you  not  think  there  were  more  people  with  bad 
judgment  than  disloyalty  in  all  of  these  matters  ? 

Mr.  Alsop.  Yes,  but  unfortunately,  Mr.  Chairman,  these  men  have 
been  attacked  as  disloyal. 

As  long  as  their  names  are  mentioned,  I  feel  I  must  say  to  the  com- 
mittee I  don't  think  they  were  disloyal.  At  the  same  time,  it  seems  ta 
me  this  inquiry  is  not  germane  to  Mr.  Budenz'  truth  or  untruth. 

Senator  Smith.  A  lot  of  this  is  not  germane,  I  think,  in  a  lot  of 
testimony  discussed. 

"Were  there  any  persons  on  Stil well's  staff  or  any  of  his  staff  that 
you  would  say  were  not  misguided  and  who  did  have  the  right  idea 
about  how  to  approach  the  problem  in  China  ? 

Mr.  Alsop,  There  was  General  Merrill,  who  was  a  very  wise  and 
able  officer,  who  constantly  tried  to  patch  things  up  and  never  quite 
succeeded  in  doing.  There  was  a  very  brilliant  leader  of  Chinese 
troops  in  the  field,  Colonel  Condon. 

General  Stilwell  had  a  very  curious  habit  of  surrounding  himself 
by  people  who  never  disagreed  with  him  at  all.  His  intelligence  officer 
at  the  end  of  his  service  in  China  was  Colonel  Dickey.    You  didn't 


INSTITUTE    OF   PACIFIC   RELATIONS  1437 

liear  much  dissent  from  General  Stilwell's  views  from  members  of 
General  Stilwell's  staff.  If  you  had  heard  it,  they  would  have  ceased 
to  be  members  of  General  Stilwell's  staff  as  soon  as  it  got  to  his  ears, 
and  like  all  staffs  everyone  was  telling  tales  on  everyone  else. 

Senator  Smith.  That  is  true  politically  also. 

Mr.  Alsop.  I  agree  this  is  an  ordinary  human  trait. 

May  I  continue,  Mr.  Chairman  ? 

Mr.  Morris.  May  I  point  out  the  relevancy  of  this  ?  Mr.  Alsop  has 
stated  it  was  unfair  to  introduce  his  own  writings  at  this  open  hear- 
ing. Now  the  particular  question  I  asked  him  was  with  reference  to 
the  statement — 

Throughout  the  fateful  years  in  China,  the  American  representatives  there 
actively  favored  the  Chinese  Communists. 

I  asked  Mr.  Alsop  if  one  of  the  American  representatives  there  was 
John  Carter  Vincent. 

Mr.  Alsop.  Mr.  Morris,  you  also  brought  out  later 

Senator  Smith.  Could  you  answer  that  question  there? 

Mr.  Morris.  Was  John  Carter  Vincent  one  of  the  American  repre- 
sentatives there? 

Mr.  Alsop.  He  was  not  one  of  those  intended  to  be  included  under 
tlie  heading  of  this  sentence  torn  from  context  that  you  have  quoted, 
Mr.  Morris,  and  I  think  if  you  will  read  the  whole  article  you  will 
find  very  clearly  he  was  not  so  included. 

INIr.  Morris.  So  when  you  talk  about  the  American  representatives 
you  mean  some  American  representatives  ? 

Mr.  Alsop.  What  I  mean — and  it  is  not  always  possible  to  treat 
an  American  magazine  like  a  legal  record — what  I  said  was  American 
representatives  who  had  power  to  influence  events,  people  who  did 
something.  I  knew  Mr.  Vincent  when  he  was  charge  d'affaires  in 
China. 

Mr.  Morris.  He  was  not  an  influence  ? 

]\Ir.  Alsop.  He  did  not  attempt  to  influence  events  when  he  was 
charge  d'affaires  in  China.  General  Stilwell  had  already  taken  over. 
It  was  like  heading  into  buzz  saw,  and  he  did  not  try  to  argue  with 
him. 

Senator  Smith.  You  mean  then  that  if  the  whole  article  is  read,  it 
would  indicate  you  did  not  mean  to  include  Mr.  Vincent  in  tliat  group. 
Now  I  have  not  read  the  article,  but  can  you  tell  us  whether  or  not 
there  is  anything  in  here  to  negative  the  idea  that  you  included 
Vincent  along  with  the  rest  of  them  in  there? 

Mr.  Alsop.  Mr.  Vincent  is  not  mentioned  in  the  article,  JMr.  Cliair- 
man.  He  was  mentioned  in  a  note  which  I  appended  to  the  orig- 
inal  

Senator  Smith.  You  said  a  moment  ago  that  if  Mr.  Morris  had 
read  the  wliole  document  he  would  see  you  did  not  mean  to  include 
Mr.  Vincent  in  this  group.  Now  is  there  any  mention  of  Mr.  Vincent 
one  way  or  another  in  here  ? 

Mr.  Alsop.  There  is  no  mention. 

Senator  Smith.  Then  he  could  not  have  been  excluded  any  more 
than  have  been  included  by  name  in  there. 

Mr.  Alsop.  Mr.  Chairman,  I  think  if  you  read  the  whole  article— 
And  I  wouldn't  recommend  your  boring  yourself  with  sucli  an  old 
publication— you  will  find  that  the  idea  is  clearly  stated  in  the  article 
that  General  Stilwell  and  his  staff  were  the  effective  American  repre- 


2438  INSTITUTE   OF   PACIFIC   RELATIONS 

sentatives  in  China,  and  this  passage  refers  back,  of  course,  to  that 
expLanation  that  in  wartime  the  theater  commander  and  his  staff  were 
the  dominant  and  effective  American  representatives,  and  the  Em- 
bassy might  just  as  well  have  been  a  ghost  town. 

Senator  Smith.  All  right,  let  Mr.  Alsop  proceed  uninterruptedly, 

if  possible. 

Mr.  Alsop.  Such  is  the  massive  documentation  of  the  true,  im- 
mensely far-reaching  import  of  Mr.  Wallace's  recommendation  to 
dismiss  General  Stilwell  in  which  Mr.  Vincent  concurred  and  joined. 

We  have  already  discussed.  Senator,  Mr.  Budenz's  attempt  to  show 
that  from  a  quotation  from  the  Daily  Worker — the  only  one  that  Mr. 
]F3udenz  himself  introduced — appearing  a  month  after  the  event  of 
Oeneral  Stilwell's  actual  dismissal,  and  that  the  Communist  Party 
was  not  displeased  by  the  replacement  of  General  Stilwell  by  General 
Wedemeyer. 

Mr.  Morris.  You  know,  do  you  not,  that  yesterday  we  introduced  an 
item  dated  November  1,  which  was  2  days  later? 

Mr.  Alsop.  I  am  well  aware  of  that.  If  you  will  have  the  record 
read  back,  Mr.  Morris,  you  will  find  that  I  specified  that  the  Vander- 
bilt  Field  column  of  December  2  was  the  only  item  introduced  by 
Mr.  Budenz. 

Mr.  Morris.  To  complete  the  record,  I  am  saying  there  was  a 
November  1,  1944,  Daily  Worker  item  introduced  yesterday  while 
jou  were  here. 

Mr.  Alsop.  I  have  already  shown.  Senator,  that  on  the  same  date, 
November  1,  1944,  in  another  article  in  the  Daily  Worker,  General 
Stilwell  was  described  by  Mr.  Joseph  Starobin  as  "our  favorite  gen- 
eral." And  Mr.  Starobin  expressed  grave  concern  about  the  dismissal 
of  General  Stilwell. 

If  you  will  study  the  Daily  Worker  of  this  period — it  is  not  an 
agreeable  study — I  think  you  will  find  a  sort  of  general  conflict  of 
attitude  toward  the  dismissal  of  General  Stilwell  which  persists 
for  a  considerable  period  of  time. 

There  are  a  couple  more  Starobin  articles  in  which  he  refused  to 
attack,  in  which  he  did  not  attack  President  Roosevelt  for  dismissing 
Stilwell  but  again  lauded  Stilwell  to  the  skies. 

Then  on  November  4  there  was  a  guest  column  by  Frederick  Vander- 
bilt  Field  clearly  showing  the  Communist  attitude  toward  Stilwell. 
It  viciously  attacked  Governor  Dewey's  foreign  policy  and  its  touch- 
ing climax  is  an  imaginary  speech  by  a  Chinese  soldier  who  is  repre- 
sented as  sadly  discouraged  by  the  thought  of  Governor  Dewey  in  the 
Wliite  House. 

The  soldier  is  made  to  inquire  gloomily. 

Will  not  Dewey  inevitably  be  against  the  Stilwells,  the  Sonfns,  the  Madame 
Sun  Yat-sens,  the  patriots,  who  struggled  for  national  unity  whereby  we  may 
fight  against  and  defeat  our  common  enemy? 

There  was  also  an  article  on  this  same  line  by  Earl  Browder  himself. 

I  do  not  want  to  burden  the  record  with  any  more  of  this  dreary 
stuff,  which  really  genuinely  fief.ms  to  me  about  the  same  as  a  debate 
on  how  many  angels  can  dance  on  the  head  of  a  pin,  but  there  is  a  long 


INSTITUTE   OF   PACIFIC   RELATIONS  1439 

article  by  James  S.  Allen  in  the  Daily  Worker  of  November  5.  This 
man  Allen  states  that  "the  most  reactionary,  imperialist,  anti-Roose- 
velt forces  within  the  United  States  were  responsible  for  General 
Stilwell's  recall,"  which  was  about  the  equivalent  in  the  Daily  Worker 
saying  that  the  professional  murders  could  not  have  done  worse. 

Almost  in  the  same  breath  Allen  praises  the  mission  to  China  of  Mr. 
Wallace,  who  recommended  General  Stilwell's  recall.  General  Hurley, 
who  also  recommended  General  Stilwell's  recall,  and  Mr.  Donald 
Nelson. 

I  submit  to  you,  Mr.  Chairman,  that  this  suggests  how  much  value 
should  be  attached  to  Mr.  Budenz's  ex  post  facto  exposition  of  these 
peculiar  Communist  scriptures. 

Mr.  Morris.  Did  you  say  praised  Henry  Wallace's  mission  ? 

Mr.  Alsop.  It  praised  Henry  Wallace's  mission,  yes.  It  praised, 
right  after  saying  that  the  dismissal  of  General  Stilwell  was  the  work 
of — I  will  quote  again  for  you, 

the  most  reactionary,  imperialist,  anti-Roosevelt  forces  in  the  United  States. 

Mr.  SouRWiNE.  Do  you  mean  that  shows  that  Allen  did  not  know 
what  was  going  on  ? 

Mr.  Alsop.  I  think  it  shows  very  clearly  that  Mr.  Allen  didn't 
know  what  was  going  on. 

Mr.  SouRwiNE.  Who  was  Mr.  Allen  ? 

Mr.  Alsop.  A  regular  writer  of  the  Daily  Worker,  I  assume  a 
member  of  the  Communist  Party. 

Mr.  Budenz  testified  that  every  article  that  appeared  in  the  Daily 
Worker  was  carefully  reviewed  and  represented  the  party  line  in  toto. 

Mr.  SouRwiNE.  Do  you  think  that  Mr.  Allen  reflected  the  Commu- 
nist Party  viewpoint  in  his  writings  ? 

Mr.  Alsop.  I  believe  Mr.  Budenz  testified  that  nothing  appeared 
in  the  Daily  Worker  that  did  not  represent  the  Communist  Party 
viewpoint. 

Mr.  SouRwiNE.  I  ask  you  what  you  think.  Do  you  think  he  re- 
flected the  Communist  Party  viewpoint  in  his  writings  ? 

Mr.  Alsop.  I  assume  he  did. 

Mr.  SouRWiNE.  Do  you  think  he  did  ? 

Mr.  Alsop.  Yes. 

Mr.  SouRWiNE.  Then  you  must  admit  that  if  that  is  true,  the  Com- 
munist Party  viewpoint  at  this  time  must  have  been  the  same  as  Mr, 
Allen's,  to  wit,  they  had  praise  for  Mr.  Wallace.     Is  that  not  right? 

Mr.  Alsop.  No  ;  I  wouldn't  attempt  to  dispute  for  one  moment 

Mr.  SouRWiNE.  Is  that  not  substantially  what  Mr.  Budenz  testi- 
fied to? 

Mr.  Alsop.  It  is  not  substantially  what  Mr.  Budenz  testified  to.  It 
is  only  part  of  what  Mr.  Budenz  testified  to,  and  by  far  the  least 
important  part,  in  my  opinion. 

Mr.  Morris.  Mr.  Chairman,  since  we  mentioned  James  S.  Allen 
here,  there  is  another  article  in  the  Daily  Worker  of  November  26  on 
this  particular  point  by  James  S.  Allen. 

Mr.  Mandel,  will  you  read  the  designated  portions  in  the  record? 


22848— 52— pt.  5 13 


1440  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Mandel.  I  read  from  tlie  Daily  Worker  of  November  26,  1944, 
paj^e  3,  by  James  S.  Allen,  the  section  marked  "United  States  policy" : 

Another  very  important  factor  is  the  continued  pressure  by  the  United  States 
for  a  positive  solution  of  the  crisis — 

and  in  heavy  type — 

it  is  clear  that  the  recall  of  General  Stilwell  did  not  mark  the  end  of  one  phase 
and  the  beginning  of  a  contrary  phase  in  American  policy.  If  anything,  the 
unity  policy  is  being  urged  more  energetically  than  in  the  past.  In  his  first  in- 
terview in  Chungking  General  Wedfnieyer  made  it  clear  that  his  policy  was  the 
same  as  that  of  his  predecessor,  General  Stilwell.  He  emphasized  the  serious 
threat  of  the  Japanese  armies  in  the  south,  called  for  unity  of  all  the  Chinese 
fighting  forces  and  their  concentration  upon  fighting  the  Japanese  and  urged 
Kuomintang-Communist  unity. 

Mr.  SouEwiNE.  Mr.  Chairman,  might  it  be  pointed  out  for  the  rec- 
ord that  that  passage  is  evidence  only  of  what  the  Communists  were 
thinking,  not  of  what  the  facts  were. 

Mr.  Morris.  Mr.  Chairman,  may  that  whole  article  and  not  just  the 
portions  read  by  Mr.  Mandel  be  introduced  in  the  record  ? 

Senator  Smith.  I  suppose  it  would  be  proper  to  introduce  it  since 
the  man's  name  has  been  brought  into  it,  but  again,  as  I  pointed  out, 
as  Mr.  Sourwine  suggests,  as  to  whether  or  not  that  represents  any 
fact  at  all  I  do  not  know  that  it  has  any  probative  value.  Anyhow, 
we  will  put  it  in  the  record.  It  will  have  plenty  of  company  there 
with  extraneous  matter. 

(The  document  referred  to  was  marked  "Exhibit  No,  341"  and  is  as 
follows:) 

Exhibit  No.  341 

[From  the  Worker,  New  York,  November  26,  1944] 

Chungking  Must  Make  a  Decision 

(By  James  S'.  Allen) 

The  changes  in  the  Chungking  Cabinet,  announced  Monday  hy  Generalissimo 
Chiang  Kai-shek,  are  still  far  from  the  drastic  reorganization  required  by  the 
crisis.  But  they  do  mean  that  the  catastrophe  now  threatening  China  is  loosen- 
ing up  and  beginning  to  disrupt  the  stubborn  alliance  of  reactionary  forces  which 
hold  the  regime  in  its  grip. 

Chiang  is  impelled  to  move.  The  Cabinet  shifts  are  in  admission  that  changes 
are  necessary  and  possible.  A  real  shake-up  is  in  the  oflSng.  The  advance  of  a 
powerful  Japanese  Army  into  the  heart  of  free  China  makes  a  basic  change 
hourly  more  imperative. 

For  China  is  on  the  verge  of  a  catastrophe  more  serious  than  any  which  has 
threatened  during  the  Sino-Japanese  War. 

It  took  the  kidnaping  of  Chiang  in  1936  and  the  Japanese  invasion  in  1937  to 
end  the  civil  war  and  open  the  road  to  unity.  The  present  disastrous  crisis  must 
force  a  decided  advance  toward  democracy  and  unity  within  China  on  a  scale 
which  will  turn  the  tide  of  war  in  Asia. 

THE  MILITARY  THREAT 

A  well-equipped  Japanese  Army  of  250,000  men  has  cut  off  the  entire  south 
China  coastal  area  from  central  China,  established  a  continuous  area  of  occupa- 
tion from  Nanking  almost  to  the  Indochina  border,  engulfed  vital  food-produc- 
ing areas,  taken  coniuiand  of  strategic  railroads  and  forced  the  bases  of  the 
United  States  Air  Forces  far  back  into  the  interior. 

And,  most  menacing  of  all,  the  Japanese  now  threaten  Kweiyang,  the  capture 
of  which  would  cut  the  Burma  Road  on  the  way  to  Chungking.  They  are  in  a 
position  to  completely  isolate  or  launch  a  drive  from  a  number  of  directions  on 
Chungking  itself. 

The  Chungking  regime  is  n'^w  faced  with  a  decision  which  it  can  no  longer 
postpone.    This  is  the  crisis  from  which  there  can  be  no  turning  back.    It  lives 


I 


INSTITUTE    OF    PACIFIC    RELATIONS  1441 

as  a  completely  revitalized  force,  or  its  dies  clearing  the  way  for  a  completely 
uew  government  capable  of  rallying  and  leading  tlie  Chinese  people  to  victory. 

THE  DEFEATIST  TRIO 

The  recent  changes  in  the  Chinese  Cabinet  must  be  viewed  with  hope.  They 
are  the  advance  rumblings  of  a  political  earthquake  which  will  shake  the  whole 
regime  out  of  its  feudal  lethargy. 

In  his  shifts,  the  Generalissimo  put  his  finger  on  the  three  Cabinet  members 
who  represent  the  most  reactionary  and  retarding  influences  in  China. 

Gen.  Ho  Ying-chin,  removed  as  War  Minister  but  permitted  to  retain  his  post 
as  chief  of  staff,  is  the  top  man  of  the  ancient  war-lord  clique  which  views  the 
Communists  as  the  main  danger,  blocks  every  effort  by  able  and  progressive 
generals  to  come  to  the  fore  in  the  war,  and  seeks  to  suppress  every  force  within 
fi'ee  China  working  for  democratic  unity. 

Ho  and  his  generals  are  directly  responsible  for  maintaining  tlie  blockade  of 
the  Comnmnist-led  armies  and  for  inciting  civil  war  against  them. 

As  recently  as  August  of  this  year  his  clique  of  generals  was  charged  with 
attacking  the  Eighth  Route  Army  in  Shansi  Province,  the  New  Fourth  in  Hupeh 
and  the  People's  Militia  in  Kwangtung,  where  they  were  harassing  the  new 
Japanese  advance  toward  Kweilin. 

THE  FEUDAL  KINGPIN 

H.  H.  Kung,  removed  as  Minister  of  Finance,  is  the  pivot  in  the  Government  of 
the  most  reactionary  groups  connected  with  China's  feudal  agrarian  economy. 
As  such  he  lias  fiercely  I'esisted  every  economic  measure  which  would  strengthen 
China's  industrial  capacity  for  war  or  grant  relief  to  the  people  from  the  run- 
away speculation  of  his  associates  in  foodstuffs  and  inflated  currency. 

Kung  still  retains  his  post  as  Vice  Chairman  of  the  Executive  Yuan.  The 
Chinese  War  Production  Board,  which  the  Nelson  mission  is  now  attempting 
to  develop,  is  under  the  direction  of  the  Executive  Yuan. 

THE  CC  CHIEF 

Chen  Li-fu,  removed  as  Minister  of  Education,  specialized  in  suppression  of 
the  democratic  elements  within  the  Kuomintang  and  in  free  China.  He  is 
leader  of  the  notorious  CC  clique,  which  lias  kept  an  iron  hand  on  the  Kuomintang 
Executive.  Through  his  secret  police  he  has  imprisoned  thousands  of  democratic, 
anti-Japanese  leaders  and  terrorized  progressive  elements. 

Chen  is  moved  to  the  head  of  the  organization  department  of  the  Kuomintang. 
His  place  as  Education  Minister  is  taken  by  Dr.  Chu  Chiahua,  himself  educated 
in  Germany  and  a  leader  of  a  pro-Nazi  group  in  China. 

The  new  Finance  Minister  is  considered  one  of  Kung's  satellites. 

Outside  of  Gen.  Chen  Cheng,  who  becomes  War  Minister,  no  new  force  is 
added  in  the  Chungking  set-up.  General  Chen,  leader  of  the  victorious  Chinese 
forces  in  the  Burma  campaign,  is  considered  one  of  China's  most  able  military 
leaders. 

At  the  least,  the  very  shifting  of  the  trio  whose  influence  must  be  entirely 
destroyed,  serves  to  emphasize  the  direction  in  which  further  changes  may  be 
looked  for.  The  important  thing  is  that  military,  political,  and  diplomatic 
pressure  is  forcing  the  Generalissimo  to  acknowledge  that  change  is  necessary  at 
the  top,  and  to  begin  to  move. 

MOKE  ENERGY  NEEDED 

But  he  has  to  move  much  more  energetically  and  in  a  more  pronounced 
democratic  direction,  and  quickly. 

In  addition  to  the  military  imperative,  a  number  of  other  important  forces 
converge  at  this  moment  to  force  a  decision  at  Chungking. 

The  Cabinet  shifts  will  not  placate  or  in  any  way  deceive  the  people  and  the 
anti-Japanese  forces.  If  anything,  they  will  be  encouraged  by  the  new  develop- 
ment and  press  their  demands  more  vigorously. 

The  unity  program  to  save  China  was  summed  up  by  Lin  Tso-han,  president  of 
the  northwest  border  region  and  Communist  representative  in  the  negotiations 
with  the  Kuomintang  which  were  broken  off  in  October. 

At  that  time,  he  declared  in  a  letter  to  Kuomintang  leaders  that  the  only  way 
to  rescue  China  from  her  crisis  is  to  put  an  end  to  one-party  dictatorship  and 
establish  a  coalition  government  to  carry  out  thorough  military,  political,  eco- 


1442  INSTITUTE    OF   PACIFIC   RELATIONS 

nomic,  and  cultural  reforms.  He  urged  the  immediate  convening  of  an  emergency 
national  conference  of  all  anti-Japanese  groups  and  parties  to  form  such  a 
government. 

The  demand  for  a  coalition  government  of  this  kind  is  shared  by  progressives 
in  the  Kuomintang,  the  League  of  Democratic  Parties,  the  anti-Japanese  mili- 
tary leaders  within  the  central  government  armies  and  all  popular  forces. 

The  fact  that  General  Chou  En-lai  has  returned  to  Chungking  to  resume  talk.s 
for  unity,  together  with  the  generalissimo's  reiteration  that  differences  will 
continue  to  be  solved  through  political  means,"  bodes  well  in  the  present 
situation. 

UNITED  STATES  POUCY 

Another  very  important  factor  is  the  continued  pressure  by  the  United  States 
for  a  positive  solution  of  the  crisis. 

It  is  clear  that  the  recall  of  General  Stilwell  did  not  mark  the  end  of  one 
phase  and  the  beginning  of  a  contrary  phase  in  American  policy.  If  anything, 
the  unity  policy  is  being  urged  more  energetically  than  in  the  past. 

In  his  first  interview  in  Chungking,  General  Wedemeyer  made  it  clear  that 
his  policy  was  the  same  as  that  of  his  predecessor.  General  Stilwell.  He 
emphasized  the  serious  threat  of  the  Japanese  armies  in  the  south,  called  for 
unity  of  all  the  Chinese  fighting  forces  and  their  concentration  upon  fighting 
the  Japanese,  and  urged  Kuomintang-Communist  unity. 

In  fact,  unity  has  become  imperative  also  from  the  vie\\'point  of  the  American 
military  contributions  to  the  war.  The  Communist-democratic  area  of  the  north- 
west is  fast  becoming  the  only  safe  area  in  which  to  base  the  Fourteenth  United 
States  Air  Force  for  attacks  upon  the  Japanese  held  interior  and  upon  Japan 
proper. 

An  American  military  mission,  headed  by  Col.  Davis  Barrett,  is  now  in  Yennan. 
One  can  surmise  that  it  is  investigating  just  this  possibility.  But  as  long  as 
Chungkink  maintains  its  blockade  of  the  northwest  it  would  be  extremely  difficult 
to  supply  American  air  bases  in  that  area. 

Also  consider  the  fact  that  Donald  Nelson,  now  heading  the  war  production 
mission  to  Chungking,  has  just  been  given  full  Cabinet  rank  by  President  Roose- 
velt. This  serves  to  emphasize  the  importance  which  the  President  places  upon 
his  mission  and  upon  the  policies  which  he  conveys. 

No  one,  in  Washington  or  elsewhere,  can  now  claim  that  he  speaks  with  greater 
authority  and  attempt  to  cancel  the  instructions  from  the  ^Yhite  House. 

EFFECT  OP  NOVEMBER  7  VICTOEY 

And  to  all  this  must  be  added  another  extremely  vital  fact.  President  Roose- 
velt is  eminently  victorious  in  the  elections,  with  a  powerful  popular  mandate  for 
his  foreign  policies. 

No  one  can  now  counsel  Chiang  Kai-shek  to  wait  in  the  hope  that  a  political 
overturn  in  the  United  States  would  strengthen  the  hand  of  the  reactionary  and 
defeatist  forces  in  his  Chungking  entourage. 

The  elections  show  that  the  policies  advocated  by  the  administration  before 
November  will  be  pursued  after  November.  The  Ho-Kunk-Chen  trio  is  beginning 
to  feel  the  effects  of  that. 

The  sands  are  shifting  in  Chungking.  The  old,  rotten  props  of  the  regime  are 
beginning  to  give  way.  A  new  resurgence  of  strength  and  unity,  in  the  fate  of 
impending  disaster,  will  save  China. 

Mr.  Alsop.  Let  me  say  to  you,  Mr.  Chairman,  that  it  seems  to  me 
the  attempt  to  prove  that  the  Communists  liked  the  recall  of  General 
Stilwell  and  his  replacement  by  General  Wedemeyer  from  articles 
written  before  the  event  is  a  misleading  attempt.  But  even  in  these 
articles  which  have  been  put  in,  written  after  the  event,  I  think  you 
can  see  a  o^reat  conflict  of  attitude  as  to  this  great  event,  great  devel- 
opment of  the  recall  of  General  Stilwell. 

I  would  like  to  submit  to  the  Chair  that  the  real  response  of  the 
Communist  leaders  was  as  follows :  First,  as  indicated  in  the  Starobin 
article  expressing  concern  and  calling  General  Stilwell  "our  favorite 
general,"  the  Communist  leaders  were  horrified  and  downcast  by  Stil- 


INSTITUTE    OF   PACIFIC   RELATIONS  1443 

well's  dismissal,  this  great  asset  which  was  a  sure  bird  in  hand  was 
lost  to  them. 

Second,  however,  they  were  presented  with  a  fait  accompli,  and 
this  fait  accompli  was  also  the  handwork  of  President  Koosevelt. 
"Beat  Dewey"  was  then  the  overriding  party  line,  and  this  deterred 
any  criticism  of  the  President's  decision  and  even  caused  Stilwell's 
dismissal  to  be  blamed  on  "anti-Eoosevelt  reactionaries." 

Third  and  finally,  the  Field  guest  column  belatedly  told  the  leaders 
to  stop  worrying  about  Stilwell's  dismissal,  indicating,  incidentally, 
that  the  Communists  had  previously  been  very  worried  indeed  because 
the  Communist  Party  perhaps  genuinely  hoped  that  Stilwell's  policy 
really  would  be  carried  on  in  China  as  they  kept  assuring  themselves 
and  their  readers. 

Here  you  have  to  consider  the  circumstances  of  the  times  Mr.  Budenz 
has  also  forgotten.  First,  the  conservative  press  was  teeming  with 
such  anti-Chiang  reports  as  that  of  Brooks  Atkinson,  which  has  been 
introduced,  and  the  President  was  subject  to  much  partisan  criticism 
by  the  Republicans  for  bringing  General  Stilwell  home. 

Second,  General  Wedemeyer  had  said  pro  forma  on  taking  com- 
mand that  he  would  carry  on  where  General  Stilwell  left  off,  and  even 
before  December  2  when  Field  wrote  the  column  quoted  by  Budenz, 
Major  General  Hurley  had  inaugurated  the  effort  to  promote  a  Chinese 
Nationalist-Communist  political  coalition,  which  lie  carried  on  for 
many  months  thereafter. 

In  fact,  however,  the  wartime  turning  point  in  China  was  the  re- 
moval of  General  Stilwell,  the  man  who  wished  to  eliminate  the 
Generalissimo  and  described  the  Chinese  Communists  as  the  only 
hope  of  the  Chinese  masses. 

Witli  General  Stilwell  in  command  I  would  remind  the  committee 
the  Communists  would  have  received  American  arms  while  the  Gen- 
eralissimo's armies  got  few  or  none.  They  would  have  been  sup- 
ported by  our  Government  at  home  while  the  Generalissimo  was  villi- 
fied  by  the  American  theater  commander.  Their  claims  would  have 
been  recognized  as  just  while  the  Generalissimo  was  pressured  into 
entering  unequal  partnership  with  them. 

General  Hurley,  although  he  pressed  for  a  coalition  to  avert  civil 
war,  did  not  press  for  a  coalition  in  the  Stilwell  spirit  of  wishing  to 
eliminate  the  Generalissimo,  and  General  Wedemeyer  in  seeking  to 
invigorate  the  Chinese  forces  in  order  to  beat  the  Japs  showed  leader- 
ship that  sent  a  new  thrill  of  confidence,  a  strong  surge  of  regeneration 
throughout  the  whole  nationalist  structure. 

With  General  Stilwell  gone,  the  Chinese  Communists'  high  hopes  of 
coming  to  power  during  the  war,  which  in  my  opinion  they  would  have 
done  if  General  Stilwell  had  not  been  dismissed,  fell  finally  to  the 
ground. 

Such  are  the  documented  facts  of  history.  I  leave  it  to  the  comniit- 
tee  to  judge  in  the  light  of  these  facts  whether  a  Communist  dbjective 
was  carried  out,  as  Mr.  Budenz  has  testified,  by  this  mission  of  Mr. 
Wallace,  wlio  so  strongly  recommended  the  dismissal  of  General 
Stilwell,  with  the  concurrence  and  approval  of  the  accused  man,  Mr. 
Vincent. 

It  is  not  I  who  convicts  Mr.  Budenz  of  untruth ;  it  is  the  facts  that 
convict  him. 


1444  INSTITUTE    OF   PACIFIC   RELATIONS 

I  now  come  to  the  way  that  Mr.  Vincent  actually  guided  Mr.  Wallace 
and  the  manner  in  which  Mr.  Wallace  was  steered  along  the  paths 
of  the  party  line,  of  which  I  was  a  witness.  On  this  head,  beside 
giving  the  testimony  I  have  briefly  quoted  from,  INIr.  Budenz  elaborated 
considerably  when  he  returned  to  the  stand.     He  said — 

General  Wedemeyer  when  he  first  came  into  public  notice  was  not  opposed  by  the 
Communists.  Indeed,  the  Communists  felt  that  the  compromise  made  with 
Wedemeyer  was  a  good  compromise. 

Again  he  said — 

The  Communists  were  very  much  opposed  to  General  Chennault  and  didn't  want 
him  in  the  picture  at  all.     They  thought  Wedemeyer  was  a  better  choice. 

Again  he  said — 

They  thought  he — 

referring  to  Wedemeyer — 

was  a  good  compromise  since  it  excluded  General  Chennault. 

It  is  downright  startling  to  contrast  this  Budenz  testimony  with  the 
actual  facts.  When  the  Wallace  party  reached  Kumming  to  visit 
General  Chennault,  I  was  serving  on  the  general's  staff.  I  had  known 
]\Tr.  Wallace  before  the  war,  and  General  Chennault  therefore  told  me 
to  serve  as  Mr.  Wallace's  escort. 

If  I  recall  correctly,  both  Mr.  Wallace  and  Mr.  Vincent  stayed  in 
General  Chennault's  house,  where  I  also  lived.  At  any  rate,  I  was 
with  Mr.  Wallace  and  Mr.  Vincent  almost  continuously  while  they 
v/ere  visiting  the  Fourteenth  Air  Force  except  during  Mr.  Wallace  s 
rather  frequent  bouts  of  violent  exercise — he  was  always  playing  volley 
ball — when  I  was  left  alone  with  Mr.  Vincent. 

At  this  distance  in  time  I  cannot  attempt  to  reconstruct  every  detail 
of  this  episode,  but  I  have,  first,  a  general  recollection  that  General 
Chennault  gave  Mr.  Wallace  the  customary  VIP  map  talk  on  the 
military  situation.  As  a  result  of  the  Japanese  offensive  in  east  China, 
the  picture  of  the  military  situation  was  very  dark  and  somber,  and 
Mr.  Wallace  seemed  much  impressed  by  the  urgency  of  the  military 
problem. 

Second,  I  have  a  general  recollection  that  Mr.  Wallace  asked  my 
opinion  of  the  political  situation  in  China.  I  can  recall  making  two 
points:  That  the  Generalissimo's  Government  was  suffering  gravely 
from  general  demoralization  resulting  from  the  triumph  of  the  reac- 
tiouiiry  faction  of  the  Kuomintang  in  the  internal  political  crisis  in 
October  1943;  and,  point  2,  that  the  shocks  administered  to  this  al- 
ready demoralized  government  by  the  terrible  defeats  in  east  China, 
which  I  may  say  largely  resulted  from  General  Stilwell's  military 
policy,  might  well  be  enough  to  bring  the  whole  structure  down. 

On  the  American  role  in  the  Chinese  political  situation  I  expressed 
to  Mr.  Wallace  approximately  the  views  contained  in  the  passages,  in 
certain  passages  from  General  Cliennault's  letter  in  which  General 
Chennault,  I  should  explain,  took  this  line  that  the  defeats  in  east 
China  were  what  undermined,  or  were  at  that  time  undermining,  the 
Generalissimo's  regime  and  producing  a  serious  danger  of  Communist 
victory  in  China. 

These  were  General  Chennault's  views  at  that  time,  as  I  knew  be- 
cause I  was  living  in  the  house  with  him. 


INSTITUTE    OF   PACIFIC   RELATIONS  1445 

I  emphasize  particularly  the  point  that  America  could  not  hope  to 
shore  up  and  strengthen  the  Generalissimo's  Government  unless  the 
American  representatives  in  China  were  prepared  to  work  with  Chiang 
Kai-shek  at  least  on  the  basis  of  honorable  equality.  Again  I  had  the 
impression  that  Mr.  Wallace  was  considerably  impressed. 

Third,  I  also  have  a  general  recollection  of  talking  over  the  Chinese 
situation  with  Mr.  Vincent  during  one  of  Mr.  Wallace's  exercise  pe- 
riods. As  nearly  as  I  can  bring  it  back,  the  conversation  followed 
much  the  same  pattern  as  that  with  Mr.  Wallace  already  mentioned,  at 
which  Mr.  Vincent  in  fact  was  probably  present. 

In  these  days  I  was  obsessed  by  the  risks  we  were  running  in  China, 
and  I  am  afraid  I  had  a  tendency  to  repeat  myself.  At  any  rate,  the 
imj)ortance  of  this  recollection  of  the  talk  with  Mr.  Vincent  is  that  1 
remembered  being  pleased  to  find  he  agreed  rather  completely  with 
my  own  view  that  the  Generalissimo  had  to  be  given  someone  who 
would  work  with  him,  who  would  command  his  confidence,  who  would 
genuinely  seek  to  support  him,  if  he  wanted  American  interests  in 
China  to  be  safeguarded  by  the  improvement  and  strengthening  of  the 
Chinese  Nationalist  Government. 

Finally,  I  have  a  clearer  recollection  of  the  circumstances  in  which 
the  cable  recommending  General  Stilwell's  recall  was  decided  upon 
and  drafted.  Mr.  Wallace,  Mr.  Vincent,  and  I  were  all  together  in 
General  Chennault's  house.  The  subject  of  the  crisis  in  China  was 
raised,  and  although  I  do  not  precisely  remember  what  any  single 
individual  said,  I  do  recall  very  clearly  the  position  taken  bj^  all  three 
of  us.  This  is  natural  in  a  long  and  complex  conversation.  You 
don't  recall  quotations  from  each  person,  but  you  do  know  which  side 
each  person  was  on. 

I  feel  pretty  sure  for  myself  that  I  expressed  the  view  that  some- 
body had  better  do  something  drastic  about  the  crisis  without  further 
delay  in  order  to  give  the  Generalissimo  adequate  military  aid  or  we 
would  encounter  a  real  disaster. 

As  I  said,  I  felt  very  strongly  about  the  problem  in  those  days.  At- 
tempting to  reconstruct  the  ensuing  conversation  as  best  I  can,  I  think 
it  soon  became  apparent  that  Mr.  Wallace  had  come  from  his  con- 
versation with  Chiang  Kai-shek  in  Chungking  with  the  inclination 
to  feel  that  General  Stllwell  could  not  do  the  job  in  China  but  with  no 
decision  to  take  any  positive  action. 

I  think  also  that  the  impression  made  on  Mr.  Wallace  by  General 
Chennault's  presentation  of  the  urgency  of  the  military  problem  had 
strengthened  this  inclination  that  Mr.  Wallace  brought  from 
Chungking. 

At  any  rate,  there  was  a  general  discussion  back  and  forth  between 
the  three  of  us.  I  particularly  recall  that  Mr.  Vincent  affirmatively 
participated  in  the  decision  that  concluded  this  discussion. 

Senator  Smith.  Where  was  Mr.  Lattimore  all  this  time? 

Mr.  Alsop.  Mr.  Lattimore  there  wasn't  room  in  the  house  for,  and 
he  lived  down  in  Chungking,  and  we  hardly  saw  him.  He  turned  up 
at  the  end. 

Senator  Smith.  You  three  got  together  and  left  him  out? 

Mr.  Alsop.  Yes;  I  recall.  I  know  he  was  there  because  I  happen 
to  have  a  photograph  that  he  took  of  me  with  a  little  Chinese  baby 
that  was  a  sort  of  pet  of  the  troops — General  Chennault's  chauffeur's 
daughter,  as  a  matter  of  fact. 


1446  INSTITUTE   OF   PACIFIC   RELATIONS 

It  was  at  the  end  of  his  time,  and  he  was  never  with  us  at  all.  I 
think  he  may  have  come  to  one  luncheon  or  dinner  with  General 
Chennault  because  I  think  I  also  recall  sitting  next  to  him,  and  I  hap- 
pened to  be  very  interested  in  the  history  of  the  Chinese  Empire,  and 
he  did  a  remarkable  learned  turn  about  the  Chinese  tribute  system, 
which  stuck  in  my  mind,  and  that  is  the  last  time  I  had  a  serious  talk 
with  him. 

I  particularly  recall  that  Mr,  Vincent  affirmatively  participated  in 
the  decision  that  concluded  this  discussion  between  Mr.  Wallace  and 
Mr.  Vincent  and  myself,  the  decision  in  short  by  Mr.  Wallace  to  take 
action  forthwith  by  recommending  the  dismissal  of  General  Stilwell. 
I  remember  this  for  a  rather  special  reason.  In  the  early  part  of 
the  discussion  they  had  been  talking  about  whether  or  not  Mr.  Wallace 
should  take  this  rather  drastic  step,  and  the  objections  to  it  were  of 
course  canvassed.  Mr.  Wallace  wanted  to  do  it.  Mr.  Vincent 
thought  he  ought  to  do  it ;  and,  God  knows,  I  thought  he  ought  to  do 
it. 

Then  in  the  second  part  of  the  discussion  there  was  this  one  point 
that  Mr.  Wallace  had  a  tendency  to  stick  on,  and  I  feared  very  much 
that  it  would  be  raised  and  would  prevent  action  at  this  time.  In 
brief,  Mr.  Wallace  had  not  seen  General  Stilwell  and  was  unable  to 
go  to  Chabua  to  meet  him. 

One  of  the  points  that  worried  Mr.  Wallace  most  was  the  desira- 
bility of  recommending  General  Stilwell's  recall  without  giving  Gen- 
eral Stilwell  an  opportunity  to  present  his  side,  which  he  was  unable 
to  do.  Mr.  Vincent  was,  after  all,  a  bureaucrat.  Bureaucrats  don't 
usually  like  drastic  measures.  And  I  remember  thinking  that,  al- 
though I  knew  very  well  what  Mr.  Vincent's  position  was,  the  usual 
feeling  that  if  you  don't  do  anything  at  least  you  haven't  made  a  mis- 
take might  well  prevail  and  he  would  make  a  big  issue  of  this  matter 
of  Mr.  Wallace's  inability  to  see  General  Stilwell. 

Instead  of  which,  as  I  have  said,  contrary  to  my  fears,  he  affirma- 
tively participated  in  the  discussion,  and  I  think  it  would  be  accurate 
to  say  encouraged  Mr.  Wallace  in  his  inclination  to  send  this  message 
to  the  President  recommending  General  Stilwell's  dismissal. 

I  also  have  a  distinctly  vivid  recollection  of  the  way  in  which  Gen- 
eral Wedemeyer  came  to  be  suggested  as  General  Stilwell's 
replacement. 

Senator  Smith.  Now,  just  a  minute.  Did  I  understand  you  to  say 
that  Mr.  Wallace  did  not  see  General  Stilwell  or  talk  to  him  about 
this  matter? 

Mr.  Alsop.  That  is  correct. 

Senator  Smith.  About  the  China  situation  while  he  was  there? 

Mr.  Alsop.  General  Stilwell  was  in  Burma  and  inaccessible. 

Mr.  Morris.  Did  Mr.  Morris  see  Da  vies.  Service,  and  Ludden? 

Mr.  Alsop.  As  far  as  I  know,  no.  He  could  not  have  seen  Davies — 
yes ;  he  did  see  Davies,  I  am  wrong.  Davies  was  in  Chungking  with 
an  invitation  from  General  Stilwell  to  go  to  Chabua;  had  been" sent 
up  for  that  purpose.  He  presented  his  invitation.  I  was  present  at 
every  conversation  between  Mr.  Davies  and  Mr.  Wallace. 

Mr.  Morris.  Did  Mr.  Davies  influence  Mr.  Wallace  at  all? 

Mr.  Alsop.  He  presented  General  Stilwell's  invitation  to  go  to 
Chabua,  which  General  Stilwell  had  ordered  him  to  do.  He  fulfilled 
his  instructions,  and  that  was  about  the  net  of  what  he  did. 


INSTITUTE    OF   PACIFIC   RELATIONS  1447 

Mr.  Morris.  How  about  Service  and  Ludden? 

Mr.  Alsop.  They  were  not  there.  Ludden  was  at  the  consulate, 
but  Mr.  Wallace  did  not  see  him,  as  far  as  I  recollect.  Service,  I  don't 
know  where  he  was — I  believe  in  Chungking. 

Senator  Smith.  Before  Mr.  Wallace's  cables  were  sent,  was  there 
anyone  to  talk  to  him  on  behalf  of  General  Stilwell  to  give  his  side 
of  the  picture  ? 

Mr.  Alsop.  He  had  seen  General  Stilwell's  staff  in  Chungking,  I 
believe,  Mr.  Chairman,  and  it  is  in  the  record  that  the  then  head  of 
General  Stilwell's  staff  in  Chungking,  General  Ferris,  had,  I  believe, 
presented  to  Mr.  Wallace  the  memorandum  urging  him  to  ask  the 
Generalissimo's  permission  to  open  an  American  military  mission,  a 
liaison  mission,  at  the  Communist  capital  in  Yenan ;  and,  if  the  usual 
procedure  was  followed — I  cannot  testify  to  this  from  my  personal 
knowledge — General  Ferris  undoubtedly  gave  Mr.  Wallace  a  presen- 
tation of  the  military  situation,  because  the  first  thing  anyone  did 
with  a  VIP  in  those  days  was  drag  him  before  a  map  and  tell  him 
where  everybody  was  and  who  was  doing  what  to  whom. 

Mr.  Morris.  Did  Mr.  Wallace  go  to  Yenan  ? 

Mr.  Alsop.  No. 

Senator  Smith.  The  point  I  am  getting  at  is  whether  there  were 
three  or  four  of  you  there  with  Mr.  Wallace. 

Mr.  Alsop.  Three  of  us. 

Senator  Smith.  Each  of  you  trying  to  influence  Mr.  Wallace  to 
request  General  Stilwell's  recall  ? 

Sir.  Alsop.  That  is  correct. 

Senator  Smith.  Did  Mr.  Wallace  talk  with  anybody  who  would 
take  opposite  views  as  to  General  Stilwell's  recall  before  he  sent  the 
cable  ? 

Mr.  Alsop.  I  wouldn't  be  able  to  testify  as  to  that. 

Senator  Smith.  So  far  as  you  know. 

Mr.  Alsop.  I  do  know  whom  he  saw  in  Kunming  more  or  less,  be- 
cause I  was  with  him  all  the  time  except  when  he  was  playing  volley- 
ball.    He  was  in  Chungking,  you  see,  for  some  days. 

Senator  Smith.  Did  he  not  say  yesterday  that  he  did  not  discuss 
his  recommendations  as  contained  in  the  cables  with  anyone  else 
except  you  three  ? 

Mr.  Alsop.  That  is  his  testimony,  but  I  cannot  testify  to  that  on 
my  personal  knowledge. 

I  also  have  a  rather  vivid  recollection  as  to  how  General  Wedemeyer 
came  to  be  suggested  for  Stilwell's  replacement.  In  brief,  Mr.  Wal- 
lace's first  idea  was  to  recommend  General  Chennault,  of  whom  the 
Generalissimo  had  spoken  t.o  him  highly  and  by  whom  he  had  been 
much  impressed. 

I  looked  to  Mr.  Vincent,  hoping  that  he  might  interpose  some 
objection  to  this  suggestion  of  my  own  boss,  but  he  went  along  with 
Mr.  Wallace.  That  is  why  I  remember  Mr.  Vincent's  view  on  this 
thing. 

So,  it  was  left  to  me,  who  had  served  General  Chennault  since  before 
Pearl  Harbor,  to  oppose  General  Chennault's  nomination  as  com- 
mander in  chief  in  China.    I  had  two  reasons  for  doing  so. 

First,  only  General  Chennault  knew  how  to  run  an  air  force  on  a 
shoestring.  Our  shoestring  was  getting  very  thin.  In  those  days  the 
Fourteenth  Air  Force  was  the  sole  force  in  being  to  prevent  thorough 


1448  INSTITUTE    OF   PACIFIC   RELATIONS 

military  disintegration  in  China.    As  Mr.  Wallace  later  put  it  in  this 
cable,  General  Chennault  was  needed  on  the  job  he  was  doing. 

Second,  and  more  important,  General  Stilwell  had  gone  to  very- 
great  lengths  to  blacken  General  Chennault's  name  at  the  Pentagon. 
Even  if  President  Koosevelt  decided  to  act  on  Wallace's  recommenda- 
tion, there  was  no  hope  at  all  that  the  President  could  ever  persuade 
the  Army  and  Air  Staff  to  put  General  Chennault  in  Stilwell's  place. 

General  Wedemeyer,  who  had  great  influence  at  the  Pentagon,  later 
I  believe  recommended  General  Chennault's  promotion  to  lieutenant 
general,  and  it  was  refused. 

The  recommendation  to  recall  Stilwell  was  certain  to  make  enough 
row  all  by  itself.  If  this  recommendation  was  coupled  with  a  nomi- 
nation of  General  Chennault,  the  roof  was  quite  sure  to  blow  off. 
Hence,  Mr.  Wallace's  idea  was  self-defeating. 

Mr.  Wallace  and  Mr.  Vincent  accepted  these  practical  arguments 
of  mine  as  being  compelling,  and  thus  it  was  I  who  "excluded  General 
Chennault,"  to  quote  Mr.  Budenz,  and  meanwhile  the  alleged  Com- 
munist, Mr.  Vincent,  in  fact  approved  the  suggestion  of  this  man 
whom  ''the  Communists  were  very  much  opposed  to  and  did  not  want 
at  all,"  to  quote  Mr.  Budenz  again. 

With  General  Chennault  out  of  the  picture,  General  Wedemeyer^ 
whom  I  had  seen  in  action  when  he  visited  Chungking  in  his  then 
capacity  as  Lord  Louis  Mountbatten's  deputy,  was  at  length  decided 
on.  Thus  Mr.  Wallace's  Kunming  cable  was  at  last  roughed  out  in 
this  discussion  with  Wallace,  Vincent,  and  me.  We  drafted  it  to- 
gether.   I  had  a  typewriter  in  the  house  and  did  the  typing. 

After  Mr.  Wallace  signed  it,  the  cable  was  sent  through  the  con- 
sulate in  Kunming,  if  I  remember  correctly.  Mr.  Wallace  does  not 
know  how  it  was  sent,  as  far  as  I  recall.    I  took  the  signed  draft  off. 

This  was  the  way  the  accused  man,  Mr.  Vincent,  "guided"  Mr. 
Wallace  "along  the  paths"  of  the  party  line. 

Again  I  ask  the  committee  to  weigh  Mr.  Budenz'  wholly  unsup- 
ported testimony  as  to  Mr.  Vincent  against  these  facts  which  I  have 
presented. 

Again  I  say  it  is  not  I  who  convicts  Mr.  Budenz  of  untruth ;  it  is 
the  facts  that  convict  him. 

To  document  this  account  I  have  given  this  committee,  I  have  also 
consulted  the  memoirs  of  General  Chennault  and  Mr.  Willauer,  who 
in  1944  was  a  high  adviser  of  the  Chinese  Government  and  is  now 
General  Chennault's  business  partner.  Naturally,  I  recounted  to  Gen- 
eral Chennault  everything  that  had  been  said  and  done  as  soon  as  I 
found  an  opportunity  immediately  after  the  sending  of  the  Wallace 
cable.  Mr.  Willauer  and  I  had  worked  very  closely  together  when 
1,  too,  was  adviser  to  Dr.  T.  V.  Soong  in  the  previous  period,  and 
when  Mr.  Willauer  passed  through  Kunming  that  summer  I  also 
reported  what  happened  to  him — in  strict  confidence,  of  course. 

I  now  offer  for  the  record  telegrams  to  me  from  General  Chennault 
and  Mr.  Willauer,  giving  their  best  recollection  of  what  I  told  them 
long  ago.    I  would  like  to  read  them. 

Senator  SMmi.  Are  those  recent  telegrams? 

Mr.  Alsop.  Yes;  they  have  just  been  received.  The  dates  are  on 
them  [reading]  : 

Reference  your  cable  inquiring  Wallace  and  Vincent  attitude  in  Kunming 
on  subject  replacement  of  Stilwell,  I  have  following  recollection :  First,  you  told 


I 


INSTITUTE    OF   PACIFIC   RELATIONS  1449 

me  Wallace  cabled  F.  D.  R.  recommending  Stilwell  replacement  and  I  recall 
Wedemeyer  among  candidates,  and  that  he  was  only  one  currently  available. 
Second,  I  recall  Vincent,  assigned  as  political  adviser  to  Wallace,  constantly  with 
Wallace,  must  have  concurred  or  had  knowledge  any  recommendations  cabled  by 
Wallace.  At  the  time  of  Wallace  visit,  Stilwell  was  actively  supporting  prcgram 
to  rearm  Communists  and  refusing  Nationalists  arms  anywhere  east  of  Salween 
River  on  Burma  Road  front. 

That  was  anywhere  in  China  proper  virtually.    [Continues  reading :] 

When  Wedemeyer  finally  replaced  Stilwell,  central  China  was  lost  to  Japs  and 
Nationalist  Government  greatly  deteriorated.  Wedemeyer  appointment  and 
policy  thereafter  revived  National  Government  strength,  political  and  military ; 
and,  if  his  policies  had  been  implemented  sooner  and  continued  postwar,  I  think 
there  would  have  been  no — repeat — no  Communist  conquest  of  China. 

Chennault. 

(The  cable  referred  to  is  as  follows :) 

Cable  From  Maj.  Gen.  C.  L.  Chennault  to  J.  W.  Alsop 

HoNQ  KoNQ  VIA  CoMPACiFic,  September  22. 
Alsop,  Washington,  D.  C: 

Reference  your  cable  inquiring  Wallace  and  Vincent  attitude  in  Kunming  on 
subject  replacement  Stilwell,  I  have  following  recollection :  First  you  told  me 
Wallace  cabled  F.  D.  R.  recommending  Stilwell  replacement,  and  I  recall  Wede- 
meyer among  candidates,  and  that  he  was  only  one  currently  available.  Second, 
I  recall  Vincent,  assigned  as  political  adviser  to  Wallace,  constantly  with 
Wallace,  must  have  concurred  or  had  knowledge  any  recommendations  cabled 
by  Wallace.  At  the  time  of  Wallace  visit,  Stilwell  wns  actively  supporting 
program  to  rearm  Communists  and  refusing  Nationalist  arms  anywhere  east 
of  Salween  River  on  Burma  Road  front.  When  Wedemeyer  finally  replaced 
Stilwell,  central  China  was  lost  to  Japs  and  Nationalist  Government  greatly 
deteriorated.  Wedemeyer  appointment  and  policy  thereafter  revived  National 
Government  strength,  political  and  military;  and,  if  his  policies  had  been 
implemented  sooner  and  continued  postwar,  I  think  there  would  have  been 
no — repeat — no  Communist  conquest  of  China. 

Chennatjlt. 

That  is  General  Chennault's  commentary  on  this  episode  of  Mr. 
Wallace's  cable. 

Mr.  Morris.  Do  you  mean  you  introduce  that  in  refutation  of 
something  Mr.  Budenz  said  ? 

Mr.  Alsop.  I  introduce  that  in  support  of  my  own  evidence,  if  you 
don't  mind. 

Mr.  Willauer's  wire  (reading)  : 

Reference  your  cable,  I  recall  visiting  you  at  Kunming  shortly  after  Wallace. 
Because  my  responsibility  as  director.  Far  East — 

there  is  a  misprint  in  the  telegram — 

for  CDS— 

which  was  Cliina  Defense  Supplies — 

remember  my  gratification  because  hope  from  info  re  Wallace  and  Vincent 
attitude  replacement  Stilwell,  who  completely  misunderstood  logistics  eco- 
nomics supply  problems  into  and  within  China.  Cannot  state  Wallace-Vincent 
attitude  except  second-hand— 

that  is  from  me — 

but  replacement  of  Stilwell  by  Wedemeyer  overnight  restored  Chinese  morale 
and  effectiveness  and  cut  out  most  of  previous  pro-Communist  attitude  of  theater 
staff. 


1450  INSTITUTE    OF   PACIFIC   RELATIONS 

(The  cable  referred  to  is  as  follows :) 

Cable  From  Whiting  Willatjer,  Fokmek  Adviser  to  Chinese  Government,  Now 
Partner  of  Genervl  Chennault,  to  J.  W.  Alsop 

Hongkong  via  Compacific,  September  22. 
Youngman  for  Alsop,  Washington,  D.  C: 

Reference  your  cable,  I  recall  visiting  you  Kunming  shortly  after  Wallace. 
Because  my  responsibility  Director,  Far  East  for  *  *  *  [garbled]  remember 
my  gratification  because  hope  from  info  re  Wallace  and  Vincent  attitude  re- 
placement Stilwell,  who  completely  misunderstood  logistics  economics  supply 
problems  into  and  within  China.  Cannot  state  Wallace-Vincent  attitude  except 
second-hand,  but  replacement  of  Stilwell  by  Wedemeyer  overnight  restored 
Chinese  morale  and  effectiveness  and  cut  out  most  of  previous  pro-Communist 
attitude  of  theater  staff. 

WlIXAUEB. 

These  are  relevant  as  indicating  that  this  account  that  I  have  given 
of  this  conversation  in  Kunming  is  not  something  that  I  have  made 
up  or  done  anytliing  to  for  this  occasion.  These  telegrams  show  that 
I  told  General  Chennault  and  Mr.  AVillauer  exactly  what  I  am  telling 
the  committee,  in  1944,  and  that  seems  to  me  relevant  evidence. 

Senator  Smith.  The  telegram  does  show  that  Vincent  was  assigned 
as  adviser  to  Wallace  and  was  constantly  with  him. 

Mr.  Alsop.  Mr.  Willauer's  telegram  is  chiefly  interesting  because 
General  Chennault's  does  not  make  it  clear  he  absolutely  knew  from 
me  that  Mr.  Vincent  joined  and  concurred,  wdiereas  Mr.  Willauer's 
telegram — which  is  very  hard  to  understand  because  he  saved  money 
on  the  cable — if  you  read  it  carefully,  it  does  make  it  clear  that  he 
knew  Vincent's  attitude  as  well  as  Wallace's. 

Senator  Smith.  Now  at  the  time  General  Stilwell  was  relieved  was 
that  before  or  after  General  Marshall  went  to  China  on  his  mission? 

Mr.  Alsop.  That  was  long  before.  General  Stilwell  was  relieved 
in  October  1944  and  General  Marshall's  mission,  if  I  recall  correctly, 
began  sometime  in  1946  after  the  war. 

Mr.  SouRwiNE.  You  think  this  conference  that  took  place  between 
yourself  and  Mr.  Vincent  and  Mr.  Wallace  was  the  primary  reason 
for  the  eventual  replacement  of  General  Stilwell? 

Mr.  Alsop.  No,  Mr.  Sourwine.  Here  we  are  talking  about  what  I 
can't  testify  to  as  a  matter  of  personal  knowledge.  Bob  Sherwood, 
who  prepared  the  Hopkins  papers,  has  told  me  that  Mr.  Wallace's 
recomm.endation  helped  to  influence  the  President's  attitude  when  the 
issue  of  General  Stilwell's  recall  finally  became  acute,  which  is  when 
the  Generalissimo  asked  for  General  Stilwell's  recall.  There  was  a 
considerable  dispute  in  Washington  at  that  time  because  Mr.  Stimson 
was  inclined  to  support  General  Stilwell  against  the  Generalissimo. 

There  was  a  discussion  between  the  White  House  and  Mr.  Stimson, 
which  is  recorded  in  Mr.  Stimson's  book,  and  the  President  after  some 
hesitation,  because  it  was  a  very  explosive  thing  to  do,  to  remove  an 
American  theater  commander — and  his  policy  always  was  to  support 
them — finally  decided  in  favor  of  General  Stilwell's  recall. 

I  think  it  is  fair  to  say  that  Mr.  Wallace's  telegram  probably  con- 
tributed to  that,  but  I  cannot  testify  to  that.  In  any  case  the  question 
is :  Was  Mr.  Wallace's  telegram,  which  was  the  main  result  of  his  mis- 
sion, carrying  out  a  Communist  objective  ? 

Mr.  Sourwine.  In  any  event,  you  make  this  clear,  that  Mr.  John 
Carter  Vincent  did  have  material  influence  upon  Vice  President 
Wallace. 


INSTITUTE    OF   PACIFIC   RELATIONS  1451 

Mr.  Alsop.  I  wouldn't  say  material  influence.  You  would  have  to 
define  "material." 

Mr.  SouRWiNE.  You  said  he  did  have  a  definite  i3art  in  influencing 
Mr.  Wallace  with  regard  to  his  recommendations  in  his  Kunming 
cables. 

Mr.  Alsop.  Let  me  try  to  be  more  precise  for  you,  Mr.  Sourwine. 
Mr.  Vincent,  if  he  had  taken  a  negative  attitude,  could  have  prevented, 
undoubtedly  have  prevented,  sending  of  the  cable.  He  took  an  affirma- 
tive attitude.  I  do  not  think  that  Mr.  Vincent's  affirmative  attitude 
influenced  Mr.  Wallace  as  much  as  perhaps  even  my  rather  strong 

Mr.  Sourwine.  Let  us  leave  out  degrees  of  influence.  Is  it  your 
contention  that  Vincent  did  influence  Mr.  Wallace  ? 

Mr.  Alsop.  I  think  it  is  fair  to  say  that. 

Mr.  Sourwine.  Do  you  know  whether  Mr.  Lattimore  influenced  Mr. 
Wallace? 

Mr.  Alsop.  I  couldn't  possibly  testify  as  to  that.  I  believe  Mr. 
Wallace  testified  he  didn't  discuss  the  subject  with  Lattimore.  He 
couldn't  have  done  it  in  Kunming,  at  any  rate. 

Mr.  Sourw^ine.  Do  you  have  any  personal  knowledge  as  to  whether 
Vincent  was  or  was  not  a  member  of  the  Communist  Party  ? 

Mr.  Alsop.  I  have  no  personal  knowledge. 

Mr.  Sourw^ine.  Do  you  have  any  personal  knowledge  as  to  whether 
Mr.  John  Carter  Vincent  was  accepting  in  any  way  instructions  from 
the  Communist  Party  ? 

Mr,  Alsop.  I  feel  very  certain  he  wasn't. 

Mr.  Sourwine.  Do  you  have  any  personal  knowledge  whether  he 
wasn't  ? 

Mr.  Alsop.  Mr.  Sourwine 

Mr.  Sourwine.  Please,  I  have  oiily  one  more  question.  It  is  ob- 
vious what  the  answer  is. 

Mr.  Atsop.  No  ;  I  have  no  personal  knowledge. 

Mr.  Sourwine.  Do  you  have  any  personal  knowledge  as  to  what 
the  Politburo  thought  with  regard  to  either  the  activities  of  John 
Carter  Vincent  or  the  activities  of  Mr,  Wallace  in  China? 

]Mr.  Alsop.  We  have  the  testimony  of  Mr.  Budenz. 

Mr.  Sourwine.  Do  you  have  any  personal  knowledge?  I  know 
we  have  Mr.  Budenz'  testimony. 

Mr.  Alsop.  Obviously  I  wasn't  in  consultation  with  the  Politburo. 

Mr.  Sourwine.  The  answer  is  "No,"  is  it  not  ? 

Mr.  Alsop.  Yes.  It  seems  to  me  the  question  is  irrelevant.  I  should 
like  to  have  that  put  in  the  record. 

ISIr.  Sourwine.  Mr.  Chairman,  we  should  not  be  argumentative. 
The  record  will  speak  for  itself. 

Senator  Smith.  I  think  it  speaks  for  itself,  all  right.  He  said 
"Yes," 

Mr.  Sourwine,  Mr.  Budenz  made  a  statement  which  IVIr,  Alsop 
has  challenged  the  accuracy  of.  The  statement  concerned  influence 
on  Mr.  Wallace  and  how  the  Politburo  regarded  that  influence,  and 
tlie  statement  also  concerned  whether  Mr,  John  Carter  Vincent  was 
a  Communist. 

Senator  Smith,  I  understand  Mr.  Alsop  says  he  had  no  personal 
knowledge  on  either  of  those  things.  That  is  what  you  said,  you 
had  no  personal  knowledge  of  either  of  those?  Did  you  say  you  did 
not  have? 


1452  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Alsop.  I  have  no  personal  knowledge. 

Mr.  MoKRis.  You  did  say  that  was  not  a  pertinent  question,  Mr. 
Alsop. 

Mr.  Alsop.  It  doesn't  seem  to  me  whether  I  have  personal  knowl- 
edge of  the  inner  workings  of  the  Politburo  is. 

Senator  Smith.  I  think  you  have  ansv/ered  it,  and  I  think  it  is  all 
right  if  that  is  what  you  said.  Mr.  Budenz  made  a  statement.  As 
I  understood  it,  you  challenged  it,  but  now  you  say  you  did  not  have 
any  personal  knowledge  of  it,  so  that  leaves  it  just  where  it  was. 

Mr.  Alsop.  May  I  explain  what  I  am  trying  to  say,  Mr.  Chairman  ? 

I  did  not  have,  naturally,  any  personal  knowledge  of  the  inner 
workings  of  the  Politburo,  but  I  did  see  Mr.  Vincent,  charged  with 
being  a  Communist  Party  member  commissioned  to  guide  Mr.  Wallace 
along  Communist  lines,  actually  guide  Mr.  Wallace  toward  the  most 
anti-Communist  act  that  was  done  in  China  during  my  time  there 
until  General  Wedemeyer  took  command. 

Senator  Smith.  That  is  your  judgment  about  it? 

Mr.  Alsop.  I  think  that  is  what  the  facts  show. 

Senator  Smith.  That  is  your  judgment  on  that  point? 

Mr.  SouRwiNE.  You  mean  what  you  just  said  is  a  statement  of  fact 
in  your  opinion  ? 

Mr.  Alsop.  Yes ;  and  may  I  introduce  for  the  record  the  attached 
letter  of  General  Wedemeyer,  since  my  capacity  to  judge  has  been 
challenged?  You  will  see  that  he  thought  at  any  rate  that  I  had  a 
very  clear  idea  of  what  Communist  interests  were  and  weren't  in 
China  while  I  was  there. 

Senator  Smith.  It  is  a  very  nice  letter  for  you  to  use  as  a  recom- 
mendation.    I  would  so  agree  at  the  time. 

Mr.  Alsop.  Since  you  say  what  I  say  is  a  matter  of  judgment  it 
should  be  permitted 

Senator  Smith.  When  you  make  a  statement  that  is  your  judgment 
and  understanding  as  to  what  the  facts  are.  I  said  that  is  your 
judgment.  Somebody  else  might  disagree.  They  might  take  a  dif- 
ferent viewpoint. 

Mr.  Alsop.  I  do  think  it  is  relevant,  since  the  question  of  my  judg- 
ment is  brought  up,  for  me  to  offer  such  evidence  I  may  have.' 

Senator  Smith.  That  is  not  about  your  judgment ;  that  is  about  your 
enthusiasm  for  China. 

Mr.  Alsop.  General  Wedemeyer  says  here : 

I  felt  you  understood  perhaps  better  than  any  other  American  in  the  China 
theater  at  that  time  the  full  implications  of  the  Communist  movement,  which 
was  active  but  which  was  at  least  held  in  abeyance  by  the  policies  of  the 
Chinese  Nationalist  Government. 

Senator  Smith.  That  has  no  place  in  the  record.  I  said  that  was 
your  judgment,  whether  it  was  good  or  bad.  I  am  not  questioning 
that. 

Mr.  Morris.  Mr.  Chairman,  I  have  one  question  here  at  this  point. 

Mr.  Alsop.  I  think  it  is  relevant  to  show  what  General  Wedemeyer 
thought  my  judgment  was. 

Mr.  Morris.  Mr.  Alsop,  I  am  going  to  read  you  a  passage  from 
your  article  which  appeared  in  the  Saturday  Evening  Post  of  Jan- 


INSTITUTE   OF   PACIFIC   RELATIONS  1453 

-nary  21, 1950,  and  ask  you  if  you  could  testify  to  that  statement  today. 

It  is  right  in  point. 

General  Marshall  used  all  his  vast  influence  to  keep  Stilwell  in  China  despite 
the  generalissimo.  This  could  only  have  meant  an  open  Sino-American  break. 
But  Harry  L.  Hopkins  pointed  out  that  a  theater  commander  who  was  persona 
non  grata  could  hardly  be  forced  upon  an  Allied  chief  of  state.  Hurley  sensibly 
advised  that  the  Sino-American  war  effort  could  not  well  be  conducted  by  two 
men  who  were  not  on  speaking  terms.  The  generalissimo  stood  firm.  In  mid- 
October,  President  Roosevelt  at  length  consented  to  recall  Stilwell  and  replace 
him  with  Lt.  Gen.  Albert  C.  Wedemeyer. 

Would  you  testify  to  that  statement  today? 

Mr.  Alsop.  If  you  add  General  Marshall  to  Colonel  Stimson,  who 
was  the  active  man  in  this  argument  with  the  White  House  but  was 
representing  General  Marshall's  views,  influenced  by  General 
Marshall,  this  is  a  correct  statement  of  what  occurred. 

Mr.  Morris.  You  will  testify  to  that  ? 

Mr.  Alsop.  Yes. 

Since  you  brought  up  General  Marshall's  name,  Mr.  Morris,  I  would 
like  to  testify  a  little  further  on  this  subject,  if  I  may. 

Mr.  Morris.  Is  this  connection 

Mr.  Alsop.  I  had  thought  it  was  the  committee's  policy,  when  they 
brought  names  in,  to  try  to  define  and  explain  their  role  in  common 
justice  to  the  individuals  named. 

Mr.  Morris.  I  have  one  question  in  that  connection.  In  view  of 
the  statement  of  facts  you  present  here,  namely,  that — 

Harry  L.  Hopkins  pointed  out  that  a  theater  commander  who  was  personna 
non  grata  could  hardly  be  forced  upon  an  allied  chief  of  state. 

will  you  say  that  the  Communists  at  that  time,  no  matter  how  much 
they  liked  General  Stilwell,  would  have  been  desirous  of  an  open 
Sino-American  break  at  that  time  ? 

Mr.  Alsop.  I  think  they  would  have  been  perfectly  delighted  by  an 
open  Sino-American  break  on  this  subject,  Mr.  Morris,  and  so  would 
anyone  who  studied  the  record.  It  would  hand  all  of  China  over  to 
the  Communists  tomorrow  morning. 

Mr.  Morris.  Have  you  read  the  excerpt  in  the  Daily  Worker  which 
said  the  big  policy  at  that  time  was  to  achieve  unity  to  defeat  the 
Japanese?  You  said  you  went  through  the  Daily  Worker  for  that 
period,  Mr.  Alsop. 

Mr.  Alsop.  If  we  are  going  to  go  on  discussing  the  Daily  Worker, 
I  think  I  had  better  introduce  expert  evidence. 

Senator  Smith.  The  question  is  whether  or  not  you  read  the  state- 
ment. 

Mr.  Alsop.  I  read  the  statement,  but  I  should  like  to  elaborate. 

Throughout  Mr.  Budenz'  testimony  on  this  Wallace  mission  to 
China  there  is  also  a  farrago  of  distortions  and  misrepresentation 
which  I  hope  the  committee  will  question  me  about  later.  I  had  best 
confine  my  testimony  to  Mr.  Budenz'  actual  untruths,  of  which  the 
third  in  my  judgment  is  his  statement  that  Mr.  Vincent  was  a  Com- 
munist Party  member. 

Mr.  SouRWiNE,  You  cannot  testify  with  regard  to  that.  You  have 
already  stated  you  have  no  personal  knowledge. 


1454  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  Allow  me  to  continue,  Mr.  Chairman.  I  am  about  to 
state  that. 

Of  course  I  cannot  give  the  committee  documentary  evidence  that 
Mr.  Vincent  did  not  belong  to  the  Commmiist  Party.  I  do  not  know 
what  forms  such  evidence  would  take.  Of  course  I  cannot  tell  the 
committee  that  I  know  as  a  matter  of  positive  fact  that  Mr.  Vincent 
was  not  a  Communist.  No  man  can  know  what  may  be  found  in  the 
secret  hearts  of  men,  but  I  put  it  to  the  committee  Mr.  Vincent  joined 
and  concurred  in  the  most  profoundly  anti-Communist  act  that  could 
have  been  attempted  in  China  at  that  time. 

I  say  to  the  committee  that  the  overwhelming  weight  of  the  evidence 
is  against  Mr.  Budenz  and  convicts  him  of  untruth  in  this  also. 

Senator  Smith.  You  are  correct  that  you  could  not  prove  that  he 
was  not  a  Communist,  but  Mr.  Budenz,  assuming  he  was  truthful 
when  he  testified  that  Mr.  Vincent  was  a  Communist,  could  come 
nearer  knowing  if  he  himself  was  a  member  and  they  worked  to- 
gether than  you  could  come  near  not  knowing 

Mr.  Alsop.  Mr.  Chairman,  you  are  a  former  president,  I  believe, 
of  the  American  Bar  Association.  What  would  be  your  judgment? 
Unsupported  allegation  for  which  not  one  shred  of  documentary  evi- 
dence has  been  introduced  stands  on  one  side,  and  on  the  other  side 
there  is  a  mass  of  documentary  evidence  that  the  man  behaved  in  the 
most  contrary  manner  possible  to  that  indicated  by  the  unsupported 
allegation. 

Senator  Smith.  That  is  a  matter  of  judgment,  but  if  Mr.  Budenz 
knew  for  a  fact  that  he  and  Mr.  Vincent  were  Communists,  that  they 
belonged  to  the  same  group,  they  swapped  information,  they  consulted 
about  Communist  matters,  whatever  they  did — I  am  not  saying  what 
is  or  is  not  because  I  do  not  know — but  if  Mr.  Budenz  said  ne  was, 
people  may  not  believe  Mr.  Budenz,  you  may  not  believe  him  and 
others  may  not  believe  him,  but  that  is  some  evidence,  at  least,  that 
Mr.  Vincent  was,  according  to  what  he  said. 

Mr.  Alsop.  I  say  the  overwhelming  weight  of  the  evidence  is  against 
Mr.  Budenz. 

Senator  Smith.  That  is  j^our  judgment.     It  may  be  mine. 

Mr.  Alsop.  I  wish  to  end  my  testimony  here,  but  there  is  what  I 
am  afraid,  what  I  regard  as  a  rather  darker  side  to  this  business, 
which  I  think  must  be  ventilated  in  view  of  the  importance  of  determin- 
ing the  reliability  of  Mr.  Budenz'  numerous  charges  against  other 
American  citizens. 

In  brief,  in  August  1950,  Mr.  Alfred  Kohlberg,  who  is  no  doubt 
known  to  the  committee,  wrote  Mr.  Wallace  asking  for  a  copy  of  his 
report  on  China  to  President  Eoosevelt.  Mr.  Wallace  replied  to  Mr. 
Kohlberg  with  a  letter  including  the  main  substance  of  the  Kunming 
cable  of  June  26,  1944,  and  specifically  the  recommendation  for  the 
dismissal  of  Stilwell,  which  I  now  offer  to  the  committee.  This  is  a 
photostat  that  Mr.  Kohlberg  sent  me. 

Mr.  SouRwiNE.  Mr.  Wallace  did  that  on  your  recommendation, 
Mr.  Alsop?  ' 

Mr.  Alsop.  He  consulted  me  about  it.  I  urged  him  to  make  public 
the  full  text  of  the  telegram,  which  he  did  not  do. 

Mr  Kohlberg  replied  to  Mr.  Wallace  on  August  22,  1950,  with  a 
friendly  and  somewhat  confused  answer,  thanking  him  for  his  kind- 
ness, stating  that  "the  wisdom  of  your  recommendations  was  quickly 


INSTITUTE   OF   PACIFIC   RELATIONS  1455 

proven  by  history,"  and  ending  by  asking  Mr.  Wallace  to  do  an  article 
for  liis  magazine,  the  Freeman. 

Mr.  Wallace  has  lent  me  a  copy  of  this  Kohlberg  letter  of  August 
1950,  which  I  also  offer  for  the  record. 

Finally,  I  offer  a  copy  of  a  third  letter  dated  September  14,  1951, 
from  Mr.  Kohlberg  to  me.  In  this  letter  Mr.  Kohlberg  alleges  that 
in  August  1950,  immediately  after  complimenting  Mr.  Wallace  on 
the  wisdom  of  his  recommenclaton  to  dismiss  General  Stilwell,  he 
showed  to  ISIr.  Budenz  the  Wallace  letter,  giving  the  substance  of  the 
Kunming  recommendations,  including,  of  course,  the  recommenda- 
tion to  dismiss  General  Stilwell. 

If  this  be  true,  if  Mr.  Budenz  indeed  gave  his  testimony  before  this 
committee  with  full  knowledge  of  the  real  outcome  of  the  Wallace 
mission  to  China,  which  he  completely  failed  to  mention  in  his  first 
appearance  on  the  stand,  I  may  add  his  case,  in  my  judgment,  should 
be  submitted  to  the  Justice  Department  for  appropriate  action. 

Senator  Smith.  That  completes  your  statement  ? 

Mr.  Alsop.  Yes,  sir. 

Senator  Smith.  Now  we  will  recess.  We  have  another  Judiciary 
Committee  meeting  at  12 :  30.  I  do  not  know  how  long  we  are  going 
to  be  there.  We  will  reconvene  at  2 :  30.  I  think  we  can  be  back  by 
that  time. 

(Whereupon,  at  12:30  p.  m.,  the  committee  recessed  to  reconvene 
at  2 :  30  p.  m.  of  the  same  day.) 

AFTERNOON  SESSION 

The  committee  reconvened  at  2 :  30  p.  m.,  upon  the  expiration  of  the 
recess. 

Senator  Smith  (presiding).  The  committee  will  come  to  order. 

Mr.  PuRCELL.  Before  the  end  of  the  morning  session,  Mr.  Alsop 
presented  three  letters,  two  written  by  Mr.  Alfred  Kohlberg  and  one 
written  by  Mr.  Henry  Wallace,  and  asked  that  they  be  received  in 
the  record. 

I  wanted  to  be  sure  they  had  been  received. 

Mr.  Alsop.  May  I  say.  Senator,  I  regard  these  as  important  parts 
of  the  record,  because  they  have  contributed  greatly  to  my  belief  that 
the  case  of  Mr.  Budenz  should  be  investigated  by  the  Justice  Depart- 
ment to  see  whether  a  charge  of  perjury  exists. 

Mr.  PuRCELL.  Have  they  been  received? 

Senator  Smith.  Was  that  while  I  was  presiding? 

Mr.  Alsop.  Yes. 

I  have  the  original  here. 

Senator  Smith.  Is  this  the  group  of  all  of  them,  or  just  one? 

Mr.  Alsop.  All. 

Senator  Smith.  They  will  be  received  and  placed  in  the  record. 

(Documents  referred  to  were  marked  as  "Exhibits  Nos.  342,  343,  and 
344,"  and  filed  for  the  record.) 

Exhibit  No.  342 
Mr.  Alfred  Kohlberg, 

New  York  18,  N.  Y. 
Dear  Mr.  Kohlberg  :  I  am  pleased  to  acknowledge  reception  of  your  letter  of 
August  9.     Right  now  I  am  so  overwhelmed  by  correspondence  and  performance 
22848— 52— pt.  5 14 


1456  INSTITUTE   OF   PACIFIC   RELATIONS 

of  my  duties  arouud  the  farm  that  it  seems  to  be  impossible  to  arrange  to  get  the 
necessary  time  to  see  you. 

I  was  not  aware  that  I  am  or  had  been  a  trustee  of  the  Institute  of  Pacific 
Relations.    Certainly  I  never  attended  any  meeting  of  the  board  of  trustees. 

It  has  been  suggested  in  the  press  that  you  feel  Owen  Lattimore  wrote  my  report 
to  President  Roosevelt.  Tliis  is  not  true.  Owen  Lattimore  has  denied  it  under 
oath  and  I  deny  it.  Lattimore  came  along  with  me  on  my  trip  to  China  in  1944 
because  OWI  felt  there  should  be  someone  along  to  handle  public  relations  in 
China  having  to  do  with  the  press. 

You  might  be  interested  in  the  following  statement  which  I  sent  Roosevelt  from 
Kunming  in  late  June  of  1944  with  regard  to  Chiang's  desire  to  have  a  liaison 
oflBcer  who  was  more  acceptable  to  him  than  Stilwell : 

"Chennault  enjoys  the  Generalissimo's  full  confidence  but  he  should  not  be 
removed  from  his  present  military  position.  The  assignment  should  go  to  a  man 
who  can  (1)  establish  himself  in  Chiang's  confidence  to  a  degree  that  the  latter 
will  accept  his  advice  in  regard  to  political  as  well  as  military  actions;  (2)  com- 
mand all  American  forces  in  China;  and  (3)  bring  about  full  coordination  be- 
tween Chinese  and  American  military  efforts.  It  is  essential  that  he  command 
American  forces  in  China  because  without  this  his  efforts  will  have  no  substance. 
He  may  even  be  Stilwell's  deputy  in  China  with  the  right  to  deal  directly  with  the 
White  House  on  political  questions  or  China  may  be  separated  from  General  Stil- 
well's present  command.  Without  the  appointment  of  such  a  representative  you 
may  expect  the  situation  to  drift  continuously  from  bad  to  worse.  I  believe  a 
representative  should  be  appointed  and  reach  Chungking  before  east  China  is  fin- 
ally lost  so  that  he  can  assume  control  of  the  situation  before  it  degenerates  too 
far. 

"While  I  do  not  feel  competent  to  propose  an  ofl3cer  for  the  job,  the  name  of 
General  Wedemeyer  has  been  recommended  to  me  and  I  am  told  that  during  his 
visit  here  he  made  himself  persona  grata  to  Chiang. 

"I  realize  that  my  opinions  are  based  on  a  very  short  stay  and  that  the  number 
of  people  who  could  be  consulted  has  necessarily  been  limited.     In  particular,  I 
regret  not  having  been  able  to  see  General  Stilwell  and  get  his  views." 
Sincerely  yours, 

H.  A.  Waixace. 


Exhibit  No.  343 

AUGUST  22,  1950. 
Mr.  Henry  A.  Wallace, 

Farvue,  South  Salem,  N.  Y. 

My  Dear  Mr.  Wallace  :  I  greatly  appreciate  your  courtesy  in  responding  to 
mine  of  the  9th,  and  particularly  for  extract  from  your  Kunming  report.  The 
wisdom  of  your  recommendations  was  quickly  proven  by  history.  Too  bad  that 
your  reports  wei  e  omitted  from  the  white  paper  and  that  the  portion  you  quoted 
to  me  was  even  omitted  from  the  Summary  Notes  of  Conversations  on  pages  551 
and  5.^2  of  the  white  paper,  which  give  a  very  different  impression  of  what  your 
attitude  really  was. 

In  Windows  on  the  Pacific — Biennial  Report  of  American  Council  Institute  of 
Pacific  Relations,  1944-16,  a  pamphlet  of  63  pages,  the  1946  board  of  trustees  is 
listed  on  pages  3,  4  and  5.  On  page  5  I  find  "Henry  A.  Wallace,  Secretary  of 
Commerce,  Washington,  D.  C."  You  are  also  shown  as  trustee  another  year. 
I  am  informed  that  the  board  met  only  annually  and  that  a  quorum  consisted  of 
12  of  the  50  members. 

I  am  happy  to  have  your  assurance  that  Owen  Lattimore  did  not  write  any  of 
your  reports.  I  knew  that  he  had  so  testified,  but  did  not  accept  that  as  con- 
clusive. I  am  quite  sure  that  I  have  never  stated  that  he  did  as  a  fact,  but  sug- 
gested that  he  uiight  have.    I  did  this  for  several  reasons. 

1.  In  the  fall  of  1944  John  Carter  Vincent  told  me  you  did  not  write  the 
pamphlet  published  by  I.  P.  R.  earlier  that  year,  over  your  signature,  entitled,  I 
think.  "Our  Job  in  the  Pacific." 

2.  State  Department  denial  of  the  existence  of  your  reports,  both  in  the  white 
paper  on  page  549  and  in  the  statement  of  Secretary  Acheson  in  release  No. 
645  of  August  24,  1949.  Referring  to  Congressman  Judd's  demand  that  your 
report  "must  be  produced  from  wherever  it  is  and  published."  Mr.  Acheson  then 
states:  "The  Department  reiterates  in  the  plainest  language  that  it  does  not  have 
in  its  files  and  does  not  know  of  the  existence  of  any  report  of  the  nature  sug- 
gested by  Mr,  Judd." 


INSTITUTE    OF   PACIFIC   RELATIONS  1457 

The  release  by  you,  shortly  thereafter,  of  part  of  your  report  revealed  the  un- 
truthfulness of  this  statement.  By  putting  2  and  2  together,  I  thought  it  possible 
that  both  Mr.  Lattimore  and  the  Department  were  not  strictly  truthful  and  sug- 
gested the  possibility  that  he  had  had  a  hand  in  writing  your  report,  especially 
as  Mr.  Vincent  wrote  me  last  fall  that  he  had  nothing  to  do  with  it  and,  in  fact, 
had  never  seen  your  report.  As  Mr.  Hazard  was  not  a  China  expert,  this  left 
only  Mr.  Lattimore  as  the  probable  author  or  assistant  in  its  preparation. 

Now,  however,  that  I  have  your  assurance,  I  accept  it  without  question  and 
only  hope  that  any  previous  doubts  and  questioning  may  not  have  been  taken  as 
conclusive. 

One  more  item  added  to  the  confusion.  General  Hurley  stated  that  in  June  or 
July  1945  he  received  a  cable  signed  "Grew"  asking  him  to  follow  your  report  as  a 
guide  to  United  States  Policy  in  China. 

This  confusion  leads  me  to  the  following  suggestion  for  your  consideration: 

A  new  fortuightly  magazine  entitled  "The  Freeman"  will  appear  in  October. 
I  am  lreasu\-er  of  the  corporation.  It  will  be  the  successor  to  "Plain  Talk"  but 
in  addition  to  the  exposure  of  Communist  activities  will  cover  the  field  of  com- 
raent  on  current  events  and  have  articles  on  economics,  art,  literature,  etc.  It 
may  be  called,  in  the  popular  jargon  of  the  day,  a  magazine  of  opinion  on  the 
"right." 

My  suggestion  would  be  an  article  by  you  covering  your  reports  from  China. 
While  the  reports  are  too  long  for  full  coverage,  liberal  quotations  would  be 
useful.  I  buggest  our  magazine,  because  of  its  coloration,  as  the  most  useful 
mediiun.  1  believe  such  an  article  would  be  useful  to  your  countrymen  in  the 
present  far  eastern  crisis,  and  would  tend  to  correct  misunderstanding  both  of 
your  attitude  and  the  importance  of  your  part  in  our  China  policy. 

While  I  am  sure  we  would  disagree  on  the  China  situation,  it  would  be  useful 
to  our  country  to  shed  as  much  light  as  possible.  Long  continuance  of  the  present 
policy  of  keeping  facts  and  decisions  from  the  public,  particularly  in  the  present 
public  war  psychology,  can  only  lead  to  disastrous  consequences,  I  fear. 

The  editors  of  The  Freeman  have  authorized  me  to  make  this  suggestion  to  you 
in  the  hope  that  you  would  consider  it  a  service  to  your  fellow  Americans. 

I  beg  to  remain. 

Very  sincerely  yours, 

Alfbed  Kohluerg. 


Exhibit  No.  344 

September  14,  1951. 
Mr.  Joseph  Alsop, 

Washington,  D.  C. 

Deab  Mb.  Alsop  :  In  your  column  of  September  5  you  state  you  personally  saw 
John  Carter  Vincent  approve  Vice  President  Wallace's  report  to  President 
Roosevelt  recommending  the  recall  of  General  Stilwell  from  command  in  China. 
In  your  column  of  September  12  you  contend  this  proves  that  Louis  Budenz 
perjured  himself  when  he  named  Vincent  as  a  Communist.  You  state  the  Wal- 
lace report  is  top  secret  and  was  unpublished  until  revealed  by  you. 

1.  This  Wallace  report  was  known  to  Mr.  Budenz  in  August  19.50,  as  I  showed 
him  the  enclosed  letter  from  Henry  Wallace— that  was  1  year  before  he  testified 
before  the  McCarran  committee. 

2.  As  per  enclosed  photostat  of  letter  from  Mr.  Vincent,  dated  October  11, 
1940,  Mr.  Vincent  denies  your  statement  that  he  participated  in  the  Wallace 
report. 

3.  Under  date  of  April  18,  1947,  Acting  Secretary  of  State  Dean  Acheson 
wrote  Senator  George,  referring  to  a  charge  that  Mr.  Vincent  had  assisted  in 
the  preparation  of  the  Wallace  report,  as  follows : 

"Comment:  Mr.  Vincent  was  assigned  by  the  Secretary  of  State  to  accom- 
pany Mr.  Wallace,  the  Vice  President  of  the  United  States,  on  the  journey  men- 
tioned. Mr.  Vincent  did  not  prepai-e  or  assist  in  the  preparation  of  the  report 
and  does  not  know  what  recommendations  it  contained.  Mr.  Vincent  had  never 
met  Mr.  Wallace  prior  to  the  trip  to  China,  saw  him  only  a  few  times  on  official 
business  after  their  retiu-n,  and  has  had  no  contact  with  him  since  his  resignation 
from  the  Government.*' 

4.  Mr.  Wallace's  several  reports  to  President  Roosevelt  (he  made  at  least 
three)  all  sing  the  genei'al  tune  of  "Chiang  must  go."  In  another  letter  to  me 
Mr.  Wallace  hinted  that  the  report  you  quote  was  not  sent  from  Kumming  but 
was  referred  to  General  Stilwell  at  New  Delhi  and  dispatched  from  there. 


1458  INSTITUTE   OF   PACIFIC   RELATIONS 

In  short,  the  Wallace  reports  were  pro-Communist,  except  for  the  recommenda- 
tion for  the  replacement  of  Stilwell ;  the  real  explanation  of  which  you  seem  to> 
miss.  Furthermore,  both  Mr.  Vincent  and  Secretary  Acheson  deny  that  Vincent 
had  anything  to  do  with  them.  Yet  on  this  flimsy  evidence  you  charge  Louis 
Budenz,  who  testified  from  inside  Communist  knowledge,  with  perjury. 

It  is  apparent  that  somebody  is  misstating  the  facts.  Either  you,  on  the  one 
side,  or  Vincent  and  Acheson  on  the  other.     Why  not  ask  Wallace? 

If  I  were  a  member  of  your  "Bleeding  Hearts,  Inc.,"  seeking  to  cry  "Witch- 
hunt "  I  could  not  find  a  better  example  of  a  vicious  charge,  without  factual 
basis,  than  yours. 

Very  truly  yours, 

Alfred  Kohlberg. 

Mr,  SouRwiNE.  Before  questioning  Mr.  Alsop  this  afternoon  witli^ 
regard  to  his  testimony  this  morning,  I  would  like  to  find  out  what 
this  is. 

I  hold  in  my  hand  a  statement.  Maybe  Mr.  Alsop  can  tell  us.  I 
think  it  is  being  passed  out  by  you. 

Mr.  Alsop.  That  is  correct.  I  told  the  chairman  about  it  before- 
I  gave  it  to  the  press.  I  spoke  to  the  committee  from  rough  notes. 
1  drew  up  a  statement.  The  mimeograph  people  made  a  mistake  here. 
It  is  a  simply  coherent  presentation  of  what  I  said  this  morning. 

Mr.  SouRwiNE.  Does  it  purport  to  be  your  testimony  this  morning  ? 

Mr.  Alsop.  It  does  not  and  I  have  so  warned  the  members  of  the 
press.  Parts  of  it  where  I  had  prepared  my  notes  carefully  and  read 
directly  from  them  do  represent  what  is  already  in  the  record.  Other 
parts  do  not,  obviously. 

Mr.  SouRwiNE.  Does  it  represent  or  include  any  of  the  questions 
that  were  asked  you  this  morning  ? 

Mr.  Alsop.  No. 

Mr.  SouRwiNE.  Nor  any  of  your  answers  to  those  questions,  except 
where  you  followed  a  prepared  text  ? 

Mr.  Alsop.  That  is  correct.    It  is  my  statement. 

Mr.  SouRWiNE.  You  said  you  didn't  have  a  statement ;  didn't  you  ? 

Mr.  Alsop.  I  said  I  was  not  going  to  make  a  statement  to  the 
committee. 

Mr.  SouRwiNE.  You  said  you  had  no  press  release. 

Mr.  Alsop.  I  said  I  had  no  press  release  at  that  time. 

Mr.  SouRwiNE.  We  now  have  one  ? 

Mr.  Alsop.  Yes. 

Mr.  SouRwiNE.  It  does  not  represent  your  testimony  this  morning  ? 

Mr.  Alsop.  In  part,  it  does. 

Mr.  SouRwiNE.  It  is  a  statement  which  includes  portions  of  your 
testimony  this  morning  presented  in  the  manner  in  which  you  desire 
to  ]Dresent  it  to  the  press  ? 

My.  Alsop.  It  is  a  coherent  "relation  of  the  various  points  I  was 
attempting  to  make. 

Mr.  SouRwiNE.  It  doesn't  represent  a  presentation  in  a  manner  in 
which  you  do  not  desire  to  present  to  the  press  ? 

Mr.  Alsop.  No. 

Senator  Smith.  It  is  a  statement  without  some  of  the  testimony 
mentioned  this  morning  ? 

Mr.  Alsop.  With  some  other,  too. 

Senator  Smith.  With  some  other  ? 

Mr.  Alsop.  There  are  some  passages  in  there  I  did  not  get  in  the 
record. 


INSTITUTE    OF   PACIFIC   RELATIONS  1459 

Senator  Smith.  This  is  merely  a  statement  to  tlie  press  and  not 
intended  to  be  a  resume  or  statement  of  what  you  testified  to  before 
the  committee  ? 

Mr.  Alsop.  No. 

Senator  Smith.  You  started  off :  "Mr.  Chairman  and  members  of 
Ihe  committee." 

Mr.  Alsop.  I  warned  the  press  this  was  an  error. 

Mr.  SouRwiNE.  Who  made  the  error? 

Mr.  Alsop.  I  couldn't  possibly  tell  you.  I  didn't  make  the 
arrangements. 

Mr.  SouRwiNE.  You  mean  you  have  no  knowledge  as  to  where  this 
was  mimeographed? 

Mr.  Alsop.  My  secretary  handles  the  mimeographing. 

Mr.  SouRWiNE.  Do  you  have  any  knowledge  as  to  where  this  was 
mimeographed  ?    You  just  testified  you  couldn't  tell  us. 

Mr.  Alsop.  If  you  will  just  be  calm  for  one  moment,  I  gave  instruc- 
tions that  the  thing  be  mimeographed  as  a  statement. 

Mr.  SouRWiNE.  Mr.  Chairman,  may  I  have  a  yes  or  no  answer  ? 

Senator  Smith.  I  thought  he  was  going  to  answer. 

Mr.  Alsop.  I  gave  instructions  that  the  thing  be  mimeographed  as 
a  statement,  and  the  instructions  were  unfortunately  not  followed. 
1  don't  know  what  mimeogi-aphing  company  did  it.  I  don't  handle 
those  things. 

Senator  Smith.  As  I  understand,  Mr.  Sourwine  asked  you  if  you 
knew  who  mimeographed  this  statement  that  you  are  presenting. 

Mr.  Alsop.  I  think  it  is  a  company  called  Bowman.  I  don't  choose 
Avho  mimeographs  this. 

Senator  Smith.  You  made  it  clear  the  statement  does  not  represent 
a  summary  of  the  testimony  you  gave  this  morning  in  some  portions 
■of  it? 

Mr.  Alsop.  Some  portions  it  follows,  and  others  it  includes  other 
things. 

Senator  Smith.  It  is  sort  of  like  a  lawyer's  brief.  He  mentions 
his  sides  of  the  case  that  are  most  important. 

Mr.  Alsop.  That  is  correct. 

Senator  Smith.  Did  you  say  you  had  another  statement  you  wish 
to  make? 

Mr.  Alsop.  Yes,  sir;  because  Mr.  Budenz — I  wonder  if  I  can  bor- 
row a  copy  of  the  record  of  Mr.  Budenz's  second  testimony  from  Mr. 
Mandel.  I  wonder  if  you  have  one  without  all  of  those  documents  in 
it.    I  am  afraid  I  will  lose  my  place  and  lose  them. 

Wliere  does  the  second  testimony  begin  ? 

The  paging  does  not  come  out  right  with  the  copy  Mr.  Morris  gave 
me  this  morning.    I  wonder  if  you  have  that  copy. 

Mr.  Morris.  He  wants  the  third. 

Mr.  Alsop.  Tlie  third  on  which  the  question  of  Mr.  Wallace's  mis- 
sion came  up.  It  was  the  one  Mr.  Morris  gave  me  this  morning.  It 
was  a  much  thinner  one  than  this. 

Thank  you,  Mr.  Mandel. 

Mr.  Budenz  addressed  himself  to  proving  there  was  a  pro-Com- 
munist tendency  in  the  part  of  Mr.  Wallace's  Kunming  cable  which 
I  joined  in  writing  which  did  not  relate  to  the  recall  of  General  Stil- 
well  from  China. 


1460  INSTITUTE   OF   PACIFIC   RELATIONS 

This  was  an  historical  and  reportorial  statement  to  the  President 
summarizing  the  main  points  of  Mr.  Wallace's  conversation  with  the 
Generalissimo  and  describing  the  situation  in  China  as  he  found  it 
at  that  time. 

Mr.  Budenz  first  came  to  the  passage  at  the  beginning  of  the  cable^ 
and  I  quote : 

The  discussion  between  the  representatives  of  the  Chinese  Communists  and 
those  of  the  Chinese  Government  are  talcing  place  in  Chungking,  but  the  atti- 
tude of  Chiang  Kai-shek  toward  the  problem  is  so  imbued  with  prejudice  that 
I  can  see  little  prospect  for  satisfactory  long-term  settlement. 

Mr.  Morris.  Is  that  an  anti-Communist  expression,  Mr.  Budenz? 

Mr.  Budenz.     Most  decidedly  not.     It  helps  the  Communists — 

and  so  on. 

On  that  point,  Mr.  Chairman,  I  think  you  have  to  put  this  state- 
ment of  Mr.  Wallace's  in  its  historical  background  in  order  to  see  how 
misleading,  in  fact,  it  was. 

The  implication  there  was  a  pro-Communist  tendency  behind  these 
sentences  which  I  actually  wrote,  I  mean. 

In  the  first  place,  you  must  remember  that  the  Chinese  Commu- 
nists and  the  National  Government  had  been  in  partnership  in  the 
prosecution  of  the  war  against  Japan  and  the  Communist  armies 
iiad  been  employed  under  the  direct  command  of  the  Generalissimo 
from  the  outbreak  of  the  war  immediately  after  the  Marco  Polo 
Bridge  incident  in  about  1940-41. 

At  that  time  the  partnership  broke  down. 

In  the  second  place,  you  have  got  to  remember  that  Americans 
in  that  period  were  a  little  bit  naive  about  politics  and  that  the  pri- 
mary emphasis  was  given  in  those  days  to  winning  the  war. 

The  Chinese  Communists  at  that  time  occupied  a  vital  area  of 
China  in  the  northwest.  The  B-29s  which  had  just  come  into  Chen- 
doo,  a  great  project  that  cost  us  $2  billion  for  bombing  Japan,  op- 
erated exclusively  over  northwest  China. 

The  Fourteenth  Air  Force  operated  very  much  over  the  northwest 
of  China.  It  was  vital  to  have  intelligence  in  the  fullest  measure 
from  northwest  China. 

It  was  also  highly  desirable  from  the  standpoint  of  operations  in- 
side China  to  have  a  working  military  understanding  between  the 
Chinese  Communists  and  the  Chinese  nationalists. 

To  give  you  one  example :  Had  there  been  such  a  working  under- 
standing even  without  any  political  liaison  whatsoever,  the  Japanese 
offensive,  which  I  testified  about  this  morning,  which  had  to  be 
based  in  Peking  and  all  the  supplies  which  had  to  be  carried  down 
through  Communist  territory,  could  have  been  impeded  greatly  by 
Communist  attacks  on  the  Japanese  supply  lines. 

There  was  nothing  short  of  a  great  need  for  straight,  simple  mili- 
tary cooperation.  The  Generalissimo  at  the  time  that  Mr.  Wallace 
is  reporting  on  had  for  internal  political  reasons  on  his  own  motions 
inaugurated  the  talks  with  Communist  representatives — I  believe  the 
Communist  representative  was  Chou  En  Lai — looking  forward  to 
some  kind  of  an  understanding. 

What  ]\Ir.  Wallace  was  really  saying  here  was  these  talks  were 
going  very  badly.  The  reason  they  were  going  very  badly  was  that 
Chiang  realized  the  political  importance  of  dealings  with  the  Com- 
munists; whereas,  most  Americans,  including,  I  must  say.  General 
Chennault,  could  not  see  why  the  Communists  and  the  nationalists 


INSTITUTE   OF   PACIFIC   RELATIONS 

could  not  get  together  and  work  together  on  the  straight  militu 
level  as  they  had  for,  I  think,  3  years,  at  the  beginning  of  the  war. 

This  phrase  "imbued  with  prejudice"  relates  to  that.  I  think  it 
is  an  unfortunately  chosen  phrase  by  hindsight,  but  I  see  nothing  help- 
ful to  the  Communists  about  it.  It  is  a  report  of  the  situation,  at 
least  so  far  as  motive  was  concerned,  and  there  was  nothing  helpful 
to  the  Communists  about  it.  It  is  a  report  of  the  situation  as  Mr. 
Wallace  knew  it  at  that  time. 

Mr.  Morris.  Is  it  an  anti-Communist  declaration  ? 

Mr.  Alsop.  No;  it  is  not  anti-Communist.  Mr.  Wallace  has  not 
contended,  nor  do  I  contend  this  reportorial  part  of  the  cable  is 
either  pro  or  anti-Connnunist,  except  in  one  passage  which  I  shall 
come  to. 

The  anti-Coimnunist  part  of  the  cable  is  the  part  where  General 
Stilwell's  dismissal  is  recommended.  I  am  attempting  to  refute  Mr. 
Budenz's  testimony  that  this  helps  the  Communists  or  was  intended 
to  help  them. 

Senator  Smith.  In  other  words,  Mr.  Budenz  said  one  way  and  you 
said  the  other,  based  on  your  conclusions  on  the  same  language? 

Mr.  Als6p.  Yes,  but  I  was  there  when  the  thing  was  written,  so 
perhaps  my  evidence  on  the  situation  and  its  origination 

Senator  Smith.  You  know  under  the  law  any  instrument  is  con- 
strued against  the  man  who  writes  it,  so  that  will  not  do  you  any  good. 

Mr.  Alsop.  The  second  point  Mr.  Budenz  makes  is  the  sentence: 

I  emphasized  to  him  the  importance  of  reaching  an  understanding  with  Russia. 
This  goes  on: 

This  was  the  first  point  in  the  Communist  drive  at  that  time  in  their  literature — 

et  cetera. 

A  Sino-Russian  understanding  may  well  have  been  the  first  point  in 
the  Communist  drive  at  that  time,  but  I  can  assure  the  chairman 
from  personnal  discussions  with  Dr.  T.  V.  Soong,  who  was  Foreign 
Minister  of  China,  it  was  also  one  of  the  two  or  three  first  points  in 
Chinese  policy.     It  was  also  a  first  point  in  American  policy. 

Obviously,  if  a  Sino-Russian  understanding  could  possibly  be  ar- 
ranged, a  great  deal  of  trouble  was  bound  to  be  avoided. 

It  seems  to  me  Mr.  Budenz  might  have  put  in  some  of  those  facts 
when  he  commented  on  this  passage  in  Mr.  Wallace's  cable. 

I  should  add  the  Chinese  desire  for  a  Sino-Russian  understanding 
reached  the  stage  a  little  earlier  than  this  point  where  they  tried  very 
hard  to  go  around  behind  the  back  of  the  American  Government  and 
make  it  a  Sino-Russian  understanding  independently  and  on  their  own 
without  telling  their  people  they  were  having  negotiations  with  the 
Soviet  Union. 

This  was  the  Generalissimo's  government  that  did  it,  and  the  Gen- 
eralissimo, I  was  informed,  although  he  did  not  tell  me,  was  fully 
aware  of  the  attempt. 

Senator  Watkins.  Where  did  you  get  your  information  ? 

Mr.  Alsop.  From  Dr.  Soong,  sir.  He  was  Foreign  Minister  of 
China. 

Senator  Watkins.  Direct  conversations? 

Mr.  Alsop.  Yes,  sir.  I  worked  with,  and  even  lived  in  the  house 
of  Dr.  Soong  for  very  long  periods  of  time.  There  was  a  very  long 
period  when  he  was,  owing  to  a  political  crisis  which  I  testified  about 


1462  INSTITUTE   OF   PACIFIC   RELATIONS 

earlier  this  morning,  under  house  arrest.  He  had  very  few  other 
people  to  talk  to.  He  had  no  means  of  exercise,  except  to  drive  out  of 
Chungking  a  couple  of  miles,  under  guard,  and  walk  up  and  down  in 
those  rice  paddies,  those  miserable  paddies. 

I  used  to  be  his  companion.  Consequently,  he  confided  a  great 
many  things  to  me,  although  I  ^vas  his  close  adviser,  a  great  many 
things  otherwise  he  might  not  have  told  me.  He  was  in  great  agony 
of  soul  at  that  time. 

Senator  Smith.  Where  is  he  now  ? 

Mr.  Alsop.  In  New  York,  sir. 

There  is  just  one  more  point  here  which  I  am  having  difficulty  find- 
ing. I  cannot  find  the  passage,  but  I  think  Mr.  Morris  will  not  dis- 
pute it,  that  one  of  the  main  Communist  aims  was  also  to  discredit 
and  undermine  the  Generalissimo.  On  this  point  he  addressed  him- 
self to  another  passage  of  Mr.  Wallace's  cable. 

Mr.  BuDEiNrz.  Thirdly,  and  I  consider  this  very  Important  in  view  of  vphat  the 
Communists  were  driving  for  at  that  time 

Namely,  to  discredit  and  undermine  the  Generalissimo — 

instability  and  tenseness  characterized  the  political  situation  with  the  rising 
lack  of  confidence  in  the  Generalissimo  and  the  present  reactionary  leadership 
of  the  Kuomintang. 

That  again  I  thinlc  very  emphatically  represents  Chiang  Kai-shek  as  incapable 
of  coping  with  the  situation.  This  is  expressed  still  further  when  it  says  Chiang 
Kai-shek  seems  to  be  unsure  regarding  the  political  situation,  bewildered  regard- 
ing the  economic  situation,  and  while  expressing  confidence  in  the  army,  dis- 
tressed regarding  military  development.  This  is  the  picture  the  Communists 
were  trying  to  have  presented  of  Chiang  Kai-shek,  as  incompetent  and  incapable 
of  handling  the  situation.  There  is  no  mention  here  of  the  long  struggle  of 
Chiang  Kai-shek  against  the  Japanese 

and  so  forth. 

As  a  man  who  was  there  at  the  time  and  who  saw  all  the  intelligence 
reports  at  least  that  were  available  to  the  Fourteenth  Air  Force,  who 
was  in  the  very  close  touch  by  the  nature  of  my  duties  with  General 
Chennault  with  the  developments  of  Chinese  politics,  I  want  to  assure 
you  that  this  was  a  rather  pale  and  moderate  reportorial  description 
of  what  was  going  on  in  China  at  that  time. 

You  must  recall  that  the  Government  of  China  in  1943,  October 
1943,  had  come  into  the  hands,  by  an  unfortunate  crisis,  of  an  extreme- 
ly competent,  excessively  corrupt  reactionary  clique.  They  had  played 
a  trick  on  the  Generalissimo  and  had  got  power. 

For  the  sake  of  the  Senator  here,  who  was  not  here  this  morning, 
I  will  say  that  their  character  was  symbolized  by  the  fact  that  for 
political  and  factional  reasons,  money  and  arms  were  denied  to  the 
forces  of  the  chief  Chinese  general  in  east  China  resisting  the  Japa- 
nese attack  because  he  belonged  to  the  opposite  faction. 

Senator  Watkins.  Was  that  within  their  own  party  ? 

Mr.  Alsop.  Yes,  the  Nationalists.  You  had  this  terrible  political 
problem  on  the  one  hand,  ^^•hich  I  may  say  the  Generalissimo  moved  to 
cure  very  shortly  after  Mr.  Wallace  left  China. 

On  the  other  hand,  you  had  these  series  of  shattering  military  de- 
feats. The  whole  armies  in  Honan,  several  hundred  thousand  men, 
completely  destroyed  in  a  matter  of  3  weeks. 

Changsha,  which  is  the  great  center  on  the  Yantze,  had  fallen  in  a 
matter  of  days.    The  Japanese  driving  south  of  Changsha  to  the  vital 


INSTITUTE    OF   PACIFIC   RELATIONS  1463 

cities  of  east  China  and  the  air  fields  in  east  China  of  the  Fourteenth 
Air  Force. 

These  disasters  were  sending  through  China  a  terrible  surge  of 
disintegration  and  weakness.  I  can  recall  General  Chennault,  after- 
going  to  Chungking  and  talking  to  the  Generalissimo,  coming  back 
and  telling  me  how  worried  he  was  about  the  Generalissimo  whom 
he  had  admired  more  than  any  man  because  the  weight  of  this  burden, 
the  terrible  situation  which  Chiang  Kai-shek  found  himself  in  and 
getting  no  aid  from  General  Stilwell,  was  really  telling  on  him. 

I  think  Mr.  Wallace's  description  was  perhaps  exaggerated,  but 
this  was  not  Communist  propaganda.  This  is  a  verbatim  construc- 
tion of  the  situation  in  China  *as  it  existed  at  that  time  and  it  does 
not  tell  half  of  it. 

I  would  finally  point  out,  Senator,  that  the  aim  of  painting  this 
dark  ])icture  was  to  bring  home  to  the  President  the  great  gravity  of 
the  situation  and,  therefore,  to  induce  him  to  replace  General  Stilwell, 
take  this  last  drastic  action  of  replacing  General  Stilwell,  so  that 
Chiang  Kai-shek  might  have  adequate  aid  and  support  in  these  des- 
perate situations  in  which  he  found  himself. 

Senator  Smith.  Do  you  know  whether  or  not  there  was  anyones 
advising  with  General  Stilwell  as  to  what  was  going  on  and  that  his 
recall  had  been  recommended? 

Mr.  Alsop.  Recommended  by  Mr.  Wallace? 

Senator  Smith.  Yes. 

Mr.  Alsop.  I  wouldn't  know  that. 

Mr.  Morris.  Is  it  your  contention  that  that  Kunming  cable  was  a 
document  of  such  a  nature  that  anybody  concurring  in  the  issuing 
of  that  report  would,  ipso  facto,  be  anti-Communist? 

Mr.  Alsop.  Providing  he  knew  anything  at  all  about  the  situation 
in  China. 

Mr.  Vincent  was  Chief  of  the  China  Division  of  the  State 
Department. 

Mr.  Morris.  Have  you  further  testimony  that  John  Carter  Vincent 
did  concur  in  the  issuance  of  that  report? 

Mr.  Alsop.  Not  only  concurred,  but  contributed. 

Mr.  Morris.  Did  you  testify  that  the  anti-Communist  essence  of 
that  report  is  the  dismissal  of  General  Stilwell? 

Mr.  Alsop.  I  do.  General  Stilwell  was  the  chief  asset  of  the  Com- 
munists in  China,  not  because  he  was  disloyal,  because  he  hated  the 
Generalissimo  and  had  no  political  judgment,  followed  certain  policies 
which  assisted  the  Communists. 

Mr.  Morris.  This  morning  we  had  read  into  the  record  three  Daily 
Worker  articles  that  showed  that  the  Daily  Worker  concurred  in 
the  dismissal  of  General  Stilwell.  Haven't  you,  therefore,  simply 
testified  that  John  Carter  Vincent  took  the  same  reaction  to  the 
Stilwell  cables  as  the  Daily  Worker  took? 

Mr.  Alsop.  I  have  testified  no  such  thing,  Mr.  Morris.  If  I  may, 
Mr.  Chairman,  I  would  like  to  speak  to  this  point  since  it  has  been 
discussed  so  much  in  regard  to  these  Daily  Worker  articles. 

In  the  first  place,  I  would  like  to  request  that  there  also  be 

Mr.  Morris.  "What  is  there  about  the  question  ? 

Mr.  Alsop.  Do  I  have  permission  to  answer  ? 

Senator  Smith.  I  think  if  you  can  answer  the  question  he  asked 
you,  if  you  understood  the  question. 


1464  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Watkins.  The  answer  did  not  seem  to  be  quite  responsive 
to  the  question. 

Senator  Smith.  Let  us  see  if  Mr.  Morris  can  ask  the  question  again, 
or  do  you  wish  to  have  it  read  back  ? 

Mr.  Morris.  Read  it  back. 

(The  record  was  thereupon  read  by  the  reporter.) 

Mr.  Alsop.  May  I  attempt  to  answer,  Mr.  Chairman  ? 

Senator  Smith.  Yes. 

Mr.  Alsop.  My  answer  is,  I  have  not  testified  in  that  sense  in  the  first 
place. 

In  the  second  place  I  consider  that  Mr.  Morris  is  making  a  very 
misleading  use  of  these  Daily  Worker  articles.  I  would  like  to  speak 
to  that  point  if  the  chairman  will  permit  me. 

Senator  Smith.  Certainly ;  but  as  I  understood  Mr.  Morris'  ques- 
tion it  was  rather  simple.  If  the  reaction  on  Mr.  Vincent  wasn't  the 
same  as  the  reaction  on  the  Daily  Worker. 

Is  that  not  your  question  ? 

Mr.  Morris.  They  concurred. 

Mr.  Alsop.  I  consider  the  question  is  inherently  misleading  because 
it  addresses  itself  to  so  tiny  a  part  of  the  truth  that  it  is  inherently 
misleading. 

I  would  like  to  address  myself  to  this  subject  of  these  Daily  Worker 
articles,  if  I  have  your  permission. 

Senator  Smith.  We  want  you  to  come  back  after  you  have  addressed 
yourself  to  answer  the  question  whether  or  not  they  did  not  concur  in 
the  final  conclusion  regardless  of  what  prompted  them  to  do  that.  If 
the  Daily  Worker  and  if  Mr.  Vincent  did  not  finally  have  the  same 
reaction,  that  amounted  to  a  concurrence,  I  mean. 

Mr.  Alsop.  I  think  it  can  be  shown  they  did  not. 

As  to  these  articles,  I  think  the  first  thing  to  remember  they  are 
articles  written  after  the  fact. 

The  second  thing,  when  the  Communists  were,  much  to  their  surprise 
I  am  confident,  confronted  with  this  rather  shattering  fait  accompli 
of  the  loss  of  their  greatest  asset  in  China,  namely.  General  Stilwell, 
the  question  was :  How  were  they  going  to  respond  to  their  loss  ? 

There  are  many  other  Daily  Worker  articles  from  which  I  quoted 
which  show  they  placed  the  highest  value  on  General  Stilwell  at  the 
time  even  after  he  was  actually  dismissed  and  ceased  to  be  of  any 
value  to  them. 

One  of  them,  for  the  information  of  the  Senator  here,  described  him 
specifically  as  "our  favorite  general." 

I  submit  first  that  this  indicates  what  the  party  line  probably  was 
at  the  time  when  Mr.  Vincent  concurred  in  the  recommendation  for 
this  dismissal  of  General  Stilwell,  which  was  some  months  earlier. 

An  active  member  of  the  Communist  Party  you  can't  feel  somehow 
would  have  gone  to  work  and  helped  to  arrange  a  Vice  Presidential 
recommendation  for  the  dismissal  of  our  favorite  general. 

In  the  second  place,  there  is  the  problem  of  the  nature  of  a  Com- 
munist reaction  to  an  event  after  they  are  confronted  with  the  fait 
accompli. 

On  this  point  I  have  consulted  Dr.  Franz  Borkenau,  who  is,  with- 
out any  question,  the  greatest  world  authority  on  the  International 
Communist  Party.  If  I  am  not  incorrect.  Dr.  Borkenau  was  not  only 
a  member  of  the  inner  group  of  the  Politburo  of  the  German  Party, 


INSTITUTE    OF   PACIFIC   RELATIONS  1465 

he  was  also  an  official  of  the  Comintern  itself  and  in  short,  one  of  the 
really  eminent  figures  in  the  Communist  movement. 

I  believe  on  the  whole  that  from  the  standpoint  of  the  Communist 
Party  organization  he  was  the  most  eminent  single  Communist  wlio 
has  ever  deserted.  He  has  since  occupied  himslf  with  writing  the 
history  of  the  world  Communist  Party. 

When  this  point  of  the  Daily  Worker  was  raised  here  yesterday  by 
Mr.  Morris  in  Mr.  Wallace's  testimony,  I  called  up  Dr.  Borkenau, 
who  is  now  living  a  studious  and  retired  life  here  in  Washington,  and 
asked  him  about  this  matter.  He  said  a  great  deal  of  documentxition 
could  be  provided  if  need  be  and  when  the  libraries  were  open,  on  the 
way  that  the  Communists  handle  a  fait  accompli,  but  that  he  could 
give  me  just  off  the  top  of  his  head  one  example  from  the  period  under 
discussion,  namely,  November  1944. 

At  that  time  there  was  a  great  crisis  in  France  and  Belgium.  The 
French  and  Belgian  Communist  Parties  simultaneously  threatened 
on  November  2,  1044,  an  armed  i-ising  if  the  Governments  decrees,  the 
French  and  Belgian  Governments,  ordering  disbandment  of  the  Com- 
munist militias  that  were  then  operating  in  France  and  Belgium  were 
carried  through. 

In  Belgium  the  issue  was  so  acute  that  the  British  troops  actually 
had  to  shoot  armed  Communist  demonstrators  carrying  before  them 
women  and  children  as  a  screen. 

Mr.  Churchill  in  the  House  of  Commons  commented  that  there 
was  no  doubt  that  the  Communist  attempt  to  capture  power  had  been 
put  down. 

When  the  rising  had  been  defeated,  the  Communist  ministers  who 
had  previously  resigned  from  the  cabinets  in  France  and  Belgium,  and 
had  declared  they  would  never  return  unless  this  project  for  disband- 
ing the  Communist  militias  was  abandoned  quietly  walked  back  into 
the  cabinets  with  their  hats  in  their  hands  and  said,  "Well,  now  let's 
forget  about  the  whole  business." 

That  was  what  happened  in  France.  I  am  not  so  sure  about 
Belgium. 

Mr.  SouRwiNE.  How  are  you  so  sure  about  France  ? 

]Mr.  Alsop.  I  have  Dr.  Borkenau 's  information  on  it. 

Mr.  SouEwiNE.  Did  b.e  tell  you  about  the  "hats  in  their  hands"? 

Mr.  Alsop.  If  you  wish  me  to  document  the  story,  I  can  do  so  in  a 
most  extensive  manner. 

Mr.  SouRwiNE.  I  am  ondeavoring  to  find  out  what  efforts  you  made 
to  document.     ViHiere  did  you  get  the  stuff  about  "hats  in  hands"? 

Mr.  Alsop.  You  will  recognize  that  was  a  figurative  expression. 

Mr.  SouEwiNE.  Yes.  I  do  so  recognize,  but  you  were  giving  it  as 
testimony  as  to  the  matter  of  historical  fact. 

Mr.  Alsop.  I  had  assumed  from  your  question  that  you  had  not 
recognized  it  as  a  figurative  expression.  I  should  have  thought  any- 
one would  have. 

They  came  back  into  the  cabinet  and  were  very  glad  to  come  back 
into  the  cabinet. 

Mr.  SouRwiNE.  How  did  you  know  that  ? 

Mr.  Alsop.  Because  they  said  so. 

Mr.  SouRwiNE.  To  whom  did  they  say  it? 

Mr.  Alsop.  Let's  not  dispute  this  matter.  If  you  want  any  further 
documentation,  I  can  go  to  the  Congressional  Library  and  submit  to 
the  committee  the  most  extensive  extract  files  of  L'Humanite. 


1466  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SouKwiNE.  This  is  the  testimony  to  which  you  are  testifying 
under  oath  and  it  is  not  impertinent  to  ask  you  how  you  know  about 
it.  It  is  obviously  hearsay  from  Dr.  Borkenau,  but  you  have  not  stated 
he  told  you  that  somebody  told  him. 

Senator  Smith.  I  think  we  had  better  limit  the  testimony  or  have 
this  gentleman  come  here  and  testify  under  oath  on  that  particular 
phase  of  it,  since  he  is  convenient  to  the  committee  in  Washington. 

Mr.  Alsop.  I  am  reluctant  to  drag  him  before  you. 

Senator  Smith.  I  think  he  is  making  statements.  They  are  state- 
ments upon  which  we  are  supposed  to  base  some  credence  and  he  ought 
to  come  before  the  committee  so  that  we  might  do  what  Mr.  Sourwine 
suggests. 

One  of  the  privileges  is  always  to  have  cross-examination  of  a 
witness  who  makes  a  statement.  That  is  the  only  way  you  can  get 
at  the  final  truth. 

Mr.  Alsop.  May  I  withdraw  Dr.  Borkenau  as  my  witness  and  offer 
to  substantiate  any  testimony  in  full  from  the  files  of  the  French 
Communist  newspaper,  L'Humanite,  which  occupied  toward  the 
French  Communist  Party  the  same  relationship  as  the  Daily  Worker 
does  here. 

Dr.  Borkenau  is  not  a  young  man.  He  is  a  studious  man.  He  is 
in  no  sense  in  public  life.  The  whole  story  is  told  in  the  files  of 
L'Humanite. 

Senator  Watkins.  You  have  copies  ? 

Mr.  Alsop.  They  are  in  the  Congressional  Library. 

Mr,  Morris.  The  question  before  the  committee  is :  Did  the  Daily 
Worker  concur  in  the  dismissal  of  General  Stillwell? 

Mr.  Alsop.  If  Mr.  Morris  will  excuse  me,  the  chairman  has  given 
me  permission  to  address  myself  to  the  problem  of  these  Daily  Worker 
articles.  I  am  trying  to  show  the  chairman  what  the  Communists 
do  when  they  are  confronted  with  a  fait  accompli. 

An  armed  lising  was  attempted.  The  Communist  ministers  left 
the  cabinet.  Their  troops  were  involved.  The  rising  was  put  down. 
This  is  the  Daily  Worker's  comment  on  the  final  result  on  November  4. 

The  whole  thing  happened  very  briefly.  Communists  were  most 
critical  of  the  Government  fearing  that  the  achievements  of  the  exist- 
ence would  be  undermined  if  the  old  Vichy  police  were  permitted  to 
take  over  the 

Senator  Smith.  That  is  in  France  ? 

Mr.  Alsop.  Our  Daily  Worker.  Yes,  what  the  Daily  Worker  is 
to  America,  L'Humanite  is  in  France. 

Senator  Smith.  We  have  enough  in  China  now. 

Mr.  Alsop.  I  am  trying  to  say,  sir,  here  you  have  Mr.  Morris 
bringing  into  the  record  articles  which  shovr  Communist  treatment  of 
a  political  fait  accompli  which  they  could  not  get  over,  around  or 
under. 

I  am  trying  to  give  you  a  parallel  case  in  which  they  were  again 
confronted  with  the  fait  accompli,  and  which  they  responded  to  by 
accepting  it. 

Senator  Smith.  This  is  a  simple  question,  it  seems  to  me,  to  answer. 
Mr.  Morris  has  asked  you  in  effect,  one,  that  the  Daily  Worker  had 
approved  of  the  recall,  or  reacted  favorablv  to  the  recall  of  General 
Stilwell. 

Mr.  Morris.  That  is  right. 


INSTITUTE   OF   PACIFIC   RELATIONS  1467 

Senator  Smith.  Two,  that  Mr.  John  Carter  Vincent  reacted  favor- 
ably to  the  recall  of  General  Stilwell. 

Is  that  not  true  from  the  evidence  before  us  ? 

Mr.  Alsop.  I  do  not  think  it  is  a  true  statement  of  the  facts,  sir. 
In  the  first  place,  it  is  incorrect  to  say  that  the  Daily  Worker  reacted 
favorably  to  the  recall  of  General  Stilwell.  They  sought  to  pass  off 
the  recall  of  General  Stilwell  as  unimportant  while  giving  clear  evi- 
dence at  the  same  time  by  calling  him  "our  favorite  general"  and  in 
other  ways. 

This  was  an  event  they  greatly  regretted. 

Senator  Smith.  Certain  people  have  called  other  persons  "my  fa- 
vorite candidate  for  election  coming  up."  They  do  not  mean  they 
approve  of  them. 

Mr.  Alsop.  Taken  in  conjunction  with  the  rest  of  the  evidence  con- 
cerning General  Stilwell's  value  tothe  Communists,  I  think  you  can 
see  why  they  called  him  "our  favorite  general." 

Mr.  Morris.  AVlien  you  bring  up  the  point  about  the  Communists 
considering  General  Stilwell  their  favorite  general,  you  understand 
that  your  testimony  along  those  lines  coincides  exactly  with  Mr. 
Budenz;  do  you  not? 

Mr.  Alsop.  Mr.  Budenz  did  not  read  the  Starobin  article  which 
I  introduced. 

Mr.  Morris.  There  is  no  question  of  what  Budenz'  thinking  was  in 
regard  to  the  favorite  general  of  the  Communists? 

Mr.  Alsop.  My  position  on  this  is  very  simple.  In  the  first  place, 
I  think  it  is  perfectly  irrelevant  what  the  Daily  Worker  said  about 
Stilwell's  recall  after  he  was  recalled.  The  time  Mr.  Vincent  con- 
curred and  joined  in  a  recommendation  for  Stilwell's  recall  was  in 
June  1944.  At  that  time  Stilwell  was  an  invaluable  asset  to  the  Com- 
munists. I  cannot  believe  that  a  Communist  would  have  joined  and 
concurred  in  the  recommendation  for  his  recall. 

Wlien  the  Communists  were  confronted  with  the  fait  accompli  of  his 
recall,  they  produced  a  rather  mixed  reaction,  as  they  frequently  do, 
and  as  Henry  Luce  says,  "They  got  caught  with  their  party  line 
down." 

After  about  a  month  they  shook  down  in  the  direction  of  passing  it 
off  and  said  they  hoped  the  Stilwell  policies  would  be  continued  ? 

Senator  Watkins.  Could  they  not  have  been  rejoicing  that  General 
Chennault  was  not  chosen  ? 

Mr.  Alsop.  I  have  already  testified  that  Mr.  Wallace  and  Mr.  Vin- 
cent wanted  to  nominate  General  Chennault  and  I  prevented  them 
from  doing  so. 

Senator  Watkins.  Could  not  the  Daily  Worker  have  been  happy 
that  Chennault  was  not  chosen  ? 

INIr.  Alsop.  That  doesn't  appear  in  the  Daily  Worker. 

Senator  Watkins.  All  their  motives  possibly  do  not  appear  in  the 
article. 

Senator  Smith.  You  say  Mr.  Vincent  approved  of  the  recall  of 
General  Stilwell? 

Mr.  Alsop.  I  say  he  concurred;  joined  and  concurred  in  a  recom- 
mendation for  it. 

Senator  Smith.  I  assume  he  approved. 

Mr.  Alsop.  Yes. 


1468  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Smith.  Without  a  play  on  precisely  the  words.  The  Daily 
Worker  articles  had  been  read,  some  of  them.  Not  saying  whether  I 
believe  them,  but  some  of  the  Daily  Worker  articles  also  approved  of 
Stilwell's  recall  if  they  were  writing  the  truth  there  that  they  felt 
that  way. 

Mr.  Alsop.  May  I  say  I  do  not  consider  this  is  an  accurate  version 
of  the  Daily  Worker's  reaction  if  you  take  all  the  Daily  Worker 
articles  that  were  published  together,  put  them  down  side  by  side. 

Senator  Smith.  The  point  is,  did  not  some  of  their  articles  approve 
of  Stilwell's  recall ?     Those  that  were  read  here? 

Mr.  Alsop.  I  cannot  say  that  I  agree  with  that,  Mr.  Chairman,  be- 
cause I  do  not. 

Senator  Watkins.  Will  not  the  record  show  whether  they  did  or 
did  not,  without  having  this  witness  trying  to  throw  light  one  way  or 
the  other? 

Senator  Smith.  I  think  so. 

Mr.  Alsop.  Since  so  much  has  been  made  of  these  articles,  I  would 
like  to  have  introduced  into  the  record  the  other  articles  such  as  that 
by  Starobin,  in  which  Stilwell  is  described  as  "our  favorite  general," 
and  that  Mr.  Budenz  rather  conspicuously  did  not  bring  forward. 
Senator  Smith.  That  is  sometliing  you  thought  of  he  did  not. 
Mr.  Alsop.  I  have  them  marked  here. 

Senator  Watkins.  Do  we  have  the  Daily  Worker  articles  in  the 
record  to  which  Mr.  Alsop  has  been  referring  !■ 

Mr.  Alsop.  You  have  the  Daily  Worker  articles  in  the  record  in 
which  it  is  contended — in  my  opinion,  they  do  not — they  sustain  the 
case  of  Mr.  Budenz. 

You  do  not  have  those  which  take  an  opposite  line. 
Senator  Watkins.  Do  we  have  the  articles  that  seem  to  be  some- 
what of  a  reaction  one  way  or  the  other  to  the  recall  of  General 
Stilwell? 

Mr.  Alsop.  You  only  have  some  of  them. 

Senator  Watkins.  I  am  asking  the  clerk.  I  do  not  think  you  prob- 
ably know  whether  they  do. 

Senator  Smith.  Mr.  Morris  offered  in  evidence  here  in  the  testi- 
mony certain  editorials  from  the  Daily  Worker  in  which  is  the  founda- 
tion for  the  question  that  the  reaction  of  the  Daily  Worker  to  General 
Stilwell's  recall  was  the  same  reaction  that  Mr.  John  Carter  Vincent 
had  from  Stilwell's  recall. 

Therefore,  the  idea  that  the  Daily  Worker  or  the  Communists,  were 
glad  of  General  Stilwell's  recall.  We  do  have  some  of  those  articles 
in  evidence,  as  I  understand. 

Senator  Watkins.  If  there  are  any  more  of  them  that  reflect  the 
attitude  of  the  Daily  Worker,  as  one  member  of  the  committee,  I  think 
we  ought  to  have  them  before  us.  I  think  the  entire  file  of  the  Daily 
Worker  ought  to  be  here  because  we  can  check  on  anything,  then. 

Senator  Smith.  That  is  right.  Anybody  that  has  any  editorials 
they  wish  to  present,  just  name  Ihem. 

Mr.  Alsop.  I  would  like  to  have  included  in  the  record — I  will 
keep  only  to  the  relevant  ones — the  article  by  Joseph  Starobin  in 
in  what  is  well  known  to  be  the  most  important  spot  in  the  Daily 
Worker. 

Mr.  Morris.  Of  what  date  ? 

Mr.  Alsop.  November  1,  1944,  page  6. 


INSTITUTE   OF   PACIFIC   RELATIONS  1469 

Senator  Watkins.  What  is  that  spot? 

Mr.  Alsop.  It  is  the  spot  under  the  cartoon.  I  believe  Mr.  Budenz 
liimself  has  written  this  is  where  the  boys  look  to  find  out  what  the 
milk  of  the  truth  really  is. 

Senator  Watkins.  Mr.  Budenz  has  testified  that  this  Daily  Worker 
is  the  telegraph  line  from  Moscow  to  its  followers  here  in  the  Unit^4 
States.     All  of  it  is  important,  I  guess. 

Mr.  Alsop.  This  is  regarded  as  the  most  important  part. 

Mr.  Morris  Mr.  Budenz  himself  has  quoted  from  Mr.  Starobin,  so 
there  is  no  issue. 

Senator  Smith.  Let  him  put  in  whatever  he  wants. 

Mr.  Alsop.  I  would  like  to  have  it  stated  for  the  record,  Mr.  Bu- 
denz did  not  quote  from  Mr.  Starobin.  There  was  only  one  article 
he  put  in.  That  was  the  article  by  Frederick  Vanderbilt  Field,  pub- 
lished over  a  month  after  General  Stilwell's  recall. 

It  was  Mr.  Morris,  the  committee  counsel,  who  put  in  Mr.  Starobin's 
article. 

Senator  Watkins.  The  record  will  show  for  itself.  It  is  hardly 
necessary  to  tell  what  is  in,  and  not. 

Mr.  Alsop.  This  is  the  Starobin  article  on  page  6  of  November  1. 

Mr.  Morris.  This  is  the  one  that  begins : 

The  sudden  withdrawal  of  Gen.  Joseph  C.  Stilwell  from  Burma-China  has 
won  outstanding  merit. 

Mr.  Alsop.  That  is  the  one  that  describes  him  as  "our  favorite 
general." 

Mr.  Sour  WINE.  Could  that  whole  article  go  in  ? 

Senator  Watkins.  Let  us  have  them  filed  for  the  record. 

Senator  Smith.  We  will  consider  them  by  reference,  so  they  can 
be  referred  to  and  if  any  points  come  up,  we  can  check. 

Mr.  Alsop.  I  would  like  to  have  in  the  record  by  reference  the 
selection  of  extracts  from  Brooks  Atkinson's  report  on  the  Stilwell 
recall  in  the  New  York  Times  which  the  Daily  Worker  republished 
on  that  same  day,  November  1,  on  page  8,  containing  the  paragraph : 

Now  General  Stilwell  has  been  forced  out  of  China  by  the  political  system 
that  has  been  consistently  blocking  him  and  America  is  acquiescing  in  a  system 
that  is  undemocratic  in  spirit  as  well  as  fact  and  is  also  unrepresentative  of  the 
Chinese  people  who  are  good  allies. 

Senator  Smith.  Was  not  that  the  view  also  expressed  by  many  other 
Americans  that  had  no  connection  whatever  with  the  Communists? 

Mr.  Alsop.  Exactly. 

Senator  Smith.  There  was  a  great  deal  of  sympathy  for  General 
Stilwell  and  a  great  deal  of  feeling  that  it  was  not  wise  to  replace  liim 
regardless  of  Communist  or  anti-Communist,  or  what  not? 

Mr.  Alsop.  Although  it  couldn't  possibly  make  up  for  the  recall 
of  General  Stilwell,  this  was  in  the  ejes  of  the  Communist,  a  sort  of 
silver  lining  to  the  dark  cloud  of  their  loss  because  they  had  reason 
to  hope  that  pressure  would  be  brought  on  Chiang  Kai-shek  because 
of  the  public  commitment. 

There  never  could  have  been  as  much  pressure  as  General  Stilwell 
brought. 

Mr.  Morris.  In  all  fairness,  you  will  want  to  call  attention  to  Mr. 
Joseph  Starobin's  article  where  he  mentions : 

I  disagree  with  Brooks  Atkinson  of  the  Times  in  only  one  respect — 
et  cetera. 


1470  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  That  is  the  silver  lining  of  the  cloud.  I  call  that  whis- 
tling in  the  dark. 

I  would  also  like  to  have  included  the  article  on  the  editorial  page, 
page  8, 1  think,  of  the  issue  of  November  4,  by  Mr.  Starobin,  entitled 
"China  Regained,"  in  which  there  is  a  great  deal  more  praise  for  Gen- 
eral Stilwell.  The  guest  column  of  that  issue,  by  Frederick  Vanderbilt 
Field,  is  on  page  9,  where  Mr.  Field  speaks  of  the  Stilwell's,  the  Sun 
Fo's,  the  Madam  Sun  Yat-sen's,  the  patriots,  who  struggle  for  a  na- 
tional unity  whereby  we  may  fight  against  and  defeat  our  hated 
enemy. 

I  would  like  to  also  have  included  in  the  record  the  article  by  James 
S.  Allen  on  page  4  of  the  issue  of  November  5,  entitled  "The  Hand  of 
GOP  Reaction  Helps  Shape  China's  Crisis." 

Stilwell's  recall,  writes  Mr.  Allen,  and  the  crises  revealed  by  it,  are 
at  least  in  part  the  work  of  the  most  reactionary  imperialist  anti- 
Roosevelt  forces  within  the  United  States. 

As  I  testified  this  morning,  that  is  equivalent  to  saying  it  is  a  job 
done  by  murderers  in  Daily  Workerese. 

I  would  like  to  have  included  in  the  record  from  that  same  issue  of 
November  5,  1944,  the  article  by  Earl  Browder  himself  on  the  edi- 
torial page,  which  is  page  8. 

Mr.  Morris.  Wliat  is  the  date? 

Mr.  Alsop.  It  is  called  "Dewey  Reveals  His  Foreign  Policy,"  in 
which  Mr.  Browder  remarks: 

His,  Governor  Dewey's  lieutenants,  have  openly  supported  Chiang  Kai-shek's 
disunity  of  policy  in  China  which  brought  about  the  recall  of  General  Stilwell. 

That  is  by  implication  a  strong  indication  of  displeasure. 

I  think  those  are  enough  to  burden  the  record  with.  They  should 
also  be  enough  to  show  that  this  final  acceptance  of  the  fait  accompli 
by  Frederick  V.  Field  or  rather  this  tentative  first  article  by  Starobin, 
could  not  in  any  way  bear  out  what  must  have  been  the  Communists 
Party  line  relative  to  General  Stilwell  when  Mr.  Vincent  joined  and 
concurred  in  recommending  the  dismissal  of  this  general,  who  was,  in 
fact,  the  most  invaluable  asset  the  Communists  in  China  had. 

This  I  would  also  like  to  point  out  occurred  6  months  prior  to  the 
publication  of  these  articles  and  before  the  fait  accompli. 

Mr.  Morris.  Do  you  have  any  direct  evidence  that  John  Carter  Vin- 
cent was  a  member  of  the  Communist  Party  ? 

Mr.  Alsop.  The  chairman  and  I  went  over  that  this  morning,  Mr. 
Morris. 

In  my  opinion,  the  overwhelming  weight  of  the  evidence  is  against 
it,  but,  obviously,  as  I  cannot  read  the  mind  of  another  man,  and  I 
don't  know  of  any  way  to  prove  that  a  man  by  documents  is  not  a 
member  of  the  Communist  Party,  I  have  no  such  direct  evidence. 

I  would  like  to  ask  you :  Can  you  think  of  any  document  except  a 
document  over  and  above  the  document  involving  a  very  powerful 
anti-Communist  agent,  that  would  disprove  an  allegation  of  mem- 
bership in  the  Communist  Party? 

Mr.  Morris.  Should  I  be  sworn  ? 

Senator  Smith.  No.  I  do  not  want  to  get  you  to  swearing.  We 
have  enough  already. 

Mr.  Alsop.  Let  me  put  it  to  you.  You  might  have  a  document  show- 
ing that  Mr.  Vincent  was  in  the  pay  of  the  FBI  as  an  agent  to  spy 


INSTITUTE   OF   PACIFIC   RELATIONS  1471 

upon  the  Communists,  and  it  would  be  quite  possible  and  anyone 
who  has  any  knowledge  of  intelligence  procedures  might  know  this 
man  was  hired  by  the  FBI  to  spy  upon  the  Communists,  but  was  a 
double  agent  and  was  really  working  for  the  Communists  and  spy- 
ing on  the  FBI. 

It  is  a  familiar  intelligence  procedure, 

Senator  Watkins.  On  this  matter  of  evidence  of  whether  or  not 
Mr.  Vincent  was  a  Communist,  it  is  one  of  those  things  we  are  in- 
vestigating as  we  go  along.  Whatever  evidence  there  is  against  them 
being  a  Communist,  of  course,  we  ought  to  receive. 

As  I  understand,  Mr.  Alsop  came  here  to  contradict  and  impeach 
the  evidence  given  by  Mr.  Budenz.  Mr.  Budenz,  as  I  understand 
from  his  testimony,  was  in  the  inner  workings  of  the  American 
Politburo  or  the  American  Communist  Party  which  was  in  direct  com- 
munication with  Moscow  and  under  its  control. 

He  testified  from  the  inside  this  man  was  considered  as  a  Commu- 
nist. That  was  his  evidence ;  what  he  heard.  I  take  it  for  granted  it 
would  probably  be  assumed  any  man  trying  to  represent  the  American 
Government  and  at  the  same  time  being  a  Communist,  was  not  going 
to  do  a  lot  of  things  every  day  in  the  year  to  indicate  he  was  a 
Communist. 

He  was  at  least  going  to  try  to  fool  them  some  of  the  time.  That 
was  one  of  the  possibilities  that  may  enter  into  the  picture. 

Senator  Smith.  Mr.  Vincent  should  come  here  and  challenge  Mr. 
Budenz's  statement  and  say,  "  I  am  not  a  Communist."  That  draws 
the  issue. 

One  says  he  is,  and  one  says  he  is  not. 

Senator  Watkins.  Mr.  Budenz  is  only  testifying  from  what  was 
considered  from  within  the  party,  that  he  was  one  of  their  men. 
No  matter  what  the  documents  may  show  or  what  was  said  on  the 
outside,  it  is  still  possible  he  may  be  still  telling  the  truth. 

Mr.  Alsop.  Mr.  Budenz'  testimony  goes  further  than  you  say.  I 
read  it  specifically. 

Mr.  MoKRis.  Mr.  Budenz,  was  John  Carter  Vincent  a  member  of  the  Com- 
munist Party? 

Mr.  Budenz.  From  oflScial  reports  that  I  have  received,  he  was. 

Senator  Watkins.  Within  the  party  it  was  officially  reported  to  him 
he  was. 

Mr.  Alsop.  There  is  another  grave  aspect  of  this  matter,  Senator, 
and  that  is  Mr.  Kohlberg  has  stated  in  a  letter  to  me  that  Mr.  Budenz, 
when  he  so  testified  before  your  committee,  had  ])een  made  aware  by 
him,  Mr.  Kohlberg,  that  Mr.  Vincent  and  Mr.  Wallace  had  partici- 
pated in  this  profoundly  anti-Communist  act. 

It  seems  to  me  that  it  puts  Mr.  Budenz  in  a  very  peculiar  position, 
if  he  came  before  this  committee  and  testified  that  Mr.  Vincent  was  a 
member  of  the  Communist  Party,  that  he  guided  Mr.  Wallace  toward 
a  Communist  objective,  at  the  same  time  suppressing  the  knowledge 
which  Mr.  Kohlberg  has  written  me  that  Mr.  Budenz  had,  that  Mr. 
Vincent  participated  in  this  profoundly  anti-Communist  act  which 
was  the  main  result  of  the  Wallace  mission. 

Senator  Watkins.  You  have  a  right  to  your  conclusion.  He  is 
testifying  as  a  member  of  a  secret  organization  that  is  supposed  to 
know  members  of  the  party. 

22848—52 — pt.  5- 15 


1472  INSTITUTE    OF    PACIFIC    RELATIONS 

Speaking  from  what  was  given  to  liim  then,  what  he  heard,  and 
the  official  reports  you  have  referred  to,  he  came  to  the  conclusion, 
and  so  testified,  that  he  was  one  of  their  members,  a  member  of  the 
Communist  Party.  Whatever  he  did  on  the  outside  can  be  used  one 
way  or  the  other  and  should  be  carefully  weighed  to  determine 
whether  he  was  or  was  not  a  Communist  agent. 

The  mere  fact  he  did  some  things  that  would  be  contrary  to  the 
Communist  line  would  be  some  evidence,  but  it  might  not  be  the 
controlling  evidence  in  the  end  that  he  was  anti-Communist  because 
spies  and  people  who  are  Avorking  that  way,  of  course,  will  perform 
many  things  to  mislead  the  people  with  whom  they  are  working. 

We  take  that  into  consideration  in  weighing  the  evidence.  It  is 
not  an  indication  that  Mr.  Budenz  was  lying  when  he  said  from  the 
knowledge  that  he  had,  from  the  secret  inner  workings,  the  secret 
meetings  of  the  Politburo  he  got  that  information  and  he  was  cured. 

I  cannot  say  what  you  said  contradicts  what  he  has  told  us. 

Mr.  Alsop.  There  are  certain  other  points  you  have  to  consider. 
For  example,  these  are  that  before  Mr.  Budenz  had  learned  that  Mr. 
Wallace  and  Mr.  Vincent  had  wanted  to  nominate  General  Chennault, 
he  testified  before  this  committee  on  his  second  appearance  on  this 
particular  matter,  that  they  were  pleased  with  the  nomination  of  Gen- 
eral Wedemeyer  for  the  specific  reason  that  it  had  excluded  General 
Chennault. 

This  was  proof  this  was  a  Communist  act. 

Senator  Watkins.  Before  you  leave  this  matter  of  General  Wede- 
meyer, did  you  know  at  the  time  General  Wedemeyer's  views  on  com- 
munism and  on  what  ought  to  be  done  over  there  to  save  the  situation 
from  the  Communists  ? 

Mr.  Alsop.  I  knew  General  Wedemeyer  was  a  very  able  and  a  very 
far  from  pro-Communist  officer. 

Senator  Watkins.  Did  you  know  what  position  he  had  taken  on  any 
argument  he  presented  ? 

Mr.  Alsop.  I  had  reason  to  believe  he  was  very  dissatisfied  with 
General  Stilwell's  policies. 

Senator  Watkins.  He  may  have  been,  but  we  asked  in  executive 
session — and  I  think  since  Mr.  Wallace  has  testified  in  public  session 
that  I  can  refer  to  it — he  said  he  did  not  know  the  views  of  General 
Wedemeyer  at  that  time. 

Mr.  Alsop.  I,  however,  was  in  China. 

Senator  Watkins.  He  said  he  did  not  know.  It  may  have  been 
from  the  Communist  point  of  view  they  had  someone  who  would  be 
fair  to  them  and  they  were  not  disturbed. 

Mr.  Alsop.  Mr.  Vincent,  I  think,  would  have  known. 

Senator  Smith.  Is  Mr.  Vincent  still  living? 

Mr.  Alsop.  I  believe  he  has  just  returned  from  Tangiers. 

Senator  Smith.  He  knows  what  he  has  said. 

Mr.  Alsop.  Yes. 

Senator  Smith.  Wliy  can  he  not  tell  the  committee? 

Mr.  Alsop.  I  should  imagine  that  would  be  the  best  evidence. 

Senator  Smith.  I  do  not  see  any  need  of  us  fussing  about  whether 
he  was  or  was  not  a  Communist,  because  we  cannot  determine  that.  I 
think  it  is  up  to  Mr.  Vincent  if  he  wants  to  come  here  to  give  us  testi- 


INSTITUTE   OF   PACIFIC   RELATIONS  1473 

mony  with  such  corroborating  circumstances  and  documentary  evi- 
dence as  he  wislies.    "We  will  certainly  investigate  it. 

I  do  not  see  any  need  of  us  arguing  about  whether  or  not  he  was 
a  Communist. 

What  is  the  next,  Mr.  Morris  ? 

Mr.  Morris.  Is  it  not  true  you  have  stated  in  one  of  your  columns 
that  Mr.  Budenz  has  given  untruthful  testimony  in  connection  with 
John  Carter  Vincent  being  a  member  of  the  Communist  Party,  and 
you  use  as  a  basis  of  that  conclusion  the  fact  that  he  did  not  so  testify 
last  year  before  he  came  before  the  Foreign  Relations  Committee? 

Mr.  Alsop.  I  would  like  to  see  that  column. 

That  is  quite  correct,  nor  did  he  before  that  committee. 

Senator  Smith.  Did  he  say  anything  that  was  contrary  to  what  he 
said  before  us,  or  it  was  something  he  did  not  mention? 

Mr.  Alsop.  It  is  a  very  peculiar  part  of  the  record  I  have  studied 
very  carefully.  Mr.  Budenz  was  asked  by  Senator  McMahon  whether 
John  Carter  Vincent  was  a  member  of  the  Communist  Party.  He 
replied :  "This  is  a  serious  charge,"  and  that  he  did  not  wish  to  make 
it  without  further  consideration. 

In  other  words,  he  was  not  at  that  time  sure. 

Senator  Smith.  No;  that  does  not  necessarily  follow.  He  might 
have  been  sure,  but  he  might  not  have  felt  he  should  expose  him. 

Mr.  Alsop.  He  said  he  was  preparing  a  list  of  members  of  the  Com- 
munist Party. 

Toward  the  end  of  these  hearings  Senator  Lodge  asked  him  if  he 
had  prepared  this  list  and  urged  him  to  present  it  to  the  committee. 

He  said  that  he  was  not  ready  with  a  list.  He  subsequently  testified 
before  this  committee  that  he  told  Mr.  Morris  privately  on  the  phone 
that  Mr.  Morris  was  a  Reserve  officer  in  the  Naval  Intelligence  and 
that,  therefore,  as  one  or  two  removes  a  part  of  the  security  apparatus 
of  our  Government  and  that  Mr.  Vincent  was  a  Communist  at  that 
time. 

That  was  not  known  to  me  when  I  wrote  my  column.  I  had  only 
available  the  public  records  in  which  he  had  been  twice  publicly  asked 
to  name  Mr.  Vincent  as  a  Communist,  first  directly,  and,  second,  in 
the  form  of  a  request  for  this  list  which  as  far  as  I  know,  he  has  never 
yet  produced. 

Both  times  he  had  refused.  Therefore,  I  wrote  in  my  column  what 
was  the  literal  fact  that  he  had  refused  to  identify  Mr.  Vincent  as  a 
Communist  before  the  Tydings  committee. 

Senator  Watkins.  A  better  word  would  have  been  "hesitated." 

Mr.  Alsop.  He  refused,  sir. 

Senator  Smith.  I  see  how  a  man  might  know  a  friend  of  his,  or 
somebody  he  knew,  was  a  Communist,  and  yet  not  want  to  say  so.  He 
might  say,  "Let  somebody  else  do  it."  I  can  see  how  you  donot  want 
to  disclose  about  someone  else  unless  it  falls  in  line  with  your  duty. 

Anyhow,  that  was  the  basis  of  your  statement? 

Aff.  Alsop.  Yes. 

'  Mr.  Morris.  Mr.  Chairman,  at  that  time  on  that  occasion  of  Mr. 
Budenz's  testimony,  the  committee  directed  that  a  letter  be  sent  to  the 
Wliite  House  to  ask  if  there  was  such  a  report  in  the  intelligence  files. 
We  received  this  morning  a  letter  dated  October  17,  1951,  from  Mat- 
thew J.  Connelly,  secretary  to  the  President.     It  reads: 


1474  INSTITUTE    OF    PACIFIC    RELATIONS 

Dear  Senator  McCarran  :  In  response  to  your  letter  of  October  5,  1951,  in 
which  you  requested  a  report  concerning  Mr.  John  Carter  Vincent,  said  to  have 
been  filed  through  the  District  Intelligence  Office  of  the  Third  Naval  District, 
I  wish  to  inform  you  that  the  files  of  the  Navy  Department  have  been  checked. 
The  report  to  which  you  refer  was  dated  May  1,  1950. 

It  then  goes  on  to  say  I  was  the  reporting  officer.  Mr.  Budenz  had 
told  me  and  I  had  made  a  report.  I  would  like  that  whole  letter  in 
evidence. 

Senator  Smith.  Let  us  have  the  whole  letter  read. 

Mr.  Morris  (reading)  : 

It  consists  solely  of  the  statement  that  an  unidentified  Naval  Reserve  officer 
had  advised  the  District  Intelligence  Office  of  the  Third  Naval  District  that  he 
had  received  information  to  the  effect  that  Mr.  John  Carter  Vincent  was  a  Com- 
munist Party  member.  The  source  of  the  information  does  not  appear,  and  no 
evidence  to  support  this  assertion  appears  in  the  report. 

The  Reserve  officer  in  question  was  subsequently  identified  on  May  22,  1950,  by 
the  District  Intelligence  Office  of  the  Third  Naval  District  as  Lt.  Commdr.  Rob- 
ert Morris,  said  to  be  special  counsel  to  the  Republican  members  of  the  Senate 
subcommittee  investigating  charges  of  communism  in  the  State  Department. 

Inasmuch  as  the  Robert  Morris  who  was  responsible  for  this  report  on  Mr. 
Vincent  appears  to  be  the  same  Robert  Morris  who  is  now  counsel  to  the  Senate 
subcommittee  of  which  you  are  chairman,  and  inasmuch  as  the  report  does  not 
indicate  that  he  revealed  the  source  of  his  information  or  provided  any  evidence 
to  support  it,  it  is  suggested  that  you  may  wish  to  inquire  of  him  as  to  his  source 
and  the  evidence  which  led  him  to  initiate  the  report. 

Very  truly  yours, 

Matthew  J.  Connelly, 
Secretary  to  the  President. 

That  is  evidence  of  the  fact  Mr.  Budenz  did  make  the  report. 

Senator  Smith.  It  is  received. 

(Document  referred  to  and  read  in  full  was  marked  "Exhibit  No. 
345,"  and  filed  for  the  record.) 

Senator  Smith.  Is  that  referring  to  the  incident  Mr.  Budenz  tes- 
tified to? 

Mr.  Morris.  Yes. 

Mr.  Alsop.  Mr.  Budenz  is  not  mentioned,  however,  in  this  report. 

Senator  Smith.  Is  there  anything  else? 

Mr.  Alsop.  No,  sir. 

Mr.  SouRwiNE.  I  have  some  questions,  Mr.  Chairman,  if  it  is  all 
right. 

I  would  like  to  request  that  unless  the  witness  or  his  attorney  has 
reason  to  believe  that  any  of  the  questions  are  unfair  or  unfairly 
phrased,  that  the  witness  be  instructed  to  make  his  answers  as  respon- 
sive as  possible,  or  keep  them  down  to  a  minimum.  They  do  not  al- 
ways have  to  be  a  yes  or  no,  but  we  are  getting  along  in  time  here.  I 
would  like  to  cover  a  little  bit  of  area. 

Mr.  PuRCELL.  May  I  make  a  statement? 

Senator  Smith.  Yes. 

Mr.  PuRCELL.  I  am  sure  the  witness  will  reply  as  briefly  as  possible. 
Wlien  he  is  asked  to  answer  yes  or  no,  I  am  sure  he  will  do  that. 

You  understand  yes  or  no  answers  do  not  always  tell  the  whole 
letory. 

Senator  Smith.  I  can  understand  how  any  commentator  wants  to 
comment  on  something  he  is  asked  about.  So  we  will  excuse  him  for 
that  tendency,  but  we  may  have  to  hold  you  down  to  answering  the 
question. 


INSTITUTE    OF   PACIFIC   RELATIONS  1475 

Mr.  Alsop.  I  am  willing  to  let  you  be  tlie  judge,  Mr.  Chairman. 

Mr.  SouRwiNE.  Do  you  know,  Mr.  Alsop,  whether  Mr.  Budenz,  in 
his  official  capacity  as  a  Communist,  ever  had  any  official  papers  deal- 
ing in  any  way  with  the  status  of  John  Carter  Vincent  ? 

Mr.  Alsop.  I  do  not. 

Mr.  SouRwiNE.  If  he  ever  did  have  any  such  papers,  did  you  know 
what  they  contained,  or  what  they  might  have  contained? 

Mr.  Alsop.  Clearly  I  couldn't  possibly  know  if  I  don't  know  he  had 
any  papers.    I  couldn't  know  anything  about  that. 

Senator  Watkins.  The  answer  would  be  "No." 

Mr.  Alsop.  I  would  say  he  has  not  produced  such  papers. 

Mr.  SouRwiNE.  Do  you  know  whether  the  Communists  fixed  or  set, 
or  had  any  objective  for  Mr.  Wallace  in  connection  with  his  visit  to 
Asia? 

Mr.  Alsop.  I  assume  that  the  Communist  objective  was  to  support 
their  general  program  in  Asia  and  Mr.  Budenz  testified  at  some  length 
on  the  subject.  It  sounded  to  me  as  though  his  testimony  was  tailor- 
made  to  support  his  previous  assertions. 

Mr.  SouRwixE.  Do  you  know,  Mr.  Alsop,  whether  the  Communist 
Party  fixed  or  set,  or  had  any  objective  for  Mr.  Wallace  in  connection 
with  his  trip  to  Asia  ? 

Mr.  Alsop.  I  know  nothing  about  the  inner  workings  of  the  Com- 
munist Party  of  the  United  States.    I  was  in  China  at  the  time. 

Mr.  SouRwiNE.  Do  you  know  whether  the  Communist  Party  fixed  or 
had  or  set  any  objective  for  Mr.  Wallace's  mission  to  Asia? 

Mr.  Alsop.  I  will  reply  again :  I  know  nothing  about  the  inner 
workings  of  the  Communist  Party  in  America  in  1944,  because  I  was 
in  China  at  the  time. 

Mr.  SouRwiNE.  Do  you  have  an  aversion  to  using  the  simple  Anglo- 
Saxon  negative  ? 

(No  answer.) 

Mr.  SouRwiNE.  The  answer  is  "No" ;  is  that  not  it  ? 

Mr.  Alsop.  The  answer  is  what  I  have  given,  Mr.  Sourwine,  and 
I  would  like  to  have  it  stand  in  the  record. 

Senator  Watkins.  I  think  the  record  will  show  when  he  analyzed 
what  it  said,  it  was  "No,"  but  it  was  around  and  around. 

Mr.  Sourwine.  It  is  not  a  direct  answer  to  the  question  that  was 
asked. 

Mr.  Alsop.  I  presume  if  I  confine  myself  to  one  sentence,  that  is 
adequate. 

Mr.  Sourwine.  If  the  Communist  Party  had  any  objective  with 
regard  to  Mr.  Wallace's  trip,  do  you  know  what  it  was  ? 

Mr,  Alsop.  I  do  not  know  about  the  inner  workings  of  the  Com- 
munist Party,  Mr.  Sourwine. 

Mr.  Sourwine.  If  the  Communist  Party  had  any  objective  with 
regard  to  Mr.  Wallace's  trip,  and  you  have  no  knowledge  of  what  such 
an  objective  might  be,  or  whether  there  was  such  an  objective,  can  you 
say  whether  such  an  objective,  if  there  was  one,  was  attained? 

Mr.  Alsop.  Could  I  have  that  question  read  back  ? 

Senator  Smith.  Yes. 

Mr.  Alsop.  These  questions  are  so  complex  and  so  apparently  ir- 
relevant I  want  to  understand  them  very  clearly  before  I  answer. 

(The  record  was  thereupon  read  by  the  reporter.) 


1476  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  Mr.  Chairman,  Mr.  Sourwine  has  in  that  question  used 
the  lan^uao;e  what  such  an  objective  might  be. 

On  that  I  do  have  some  knowledge. 

One  of  the  objectives  undoubtedly  might  have  been  and  in  the 
greatest  possible  probability  was  to  sustain  General  Stilwell  who  was 
working  at  that  time  in  such  a  way  that  if  he  had  not  subsequently 
been  dismissed,  I  think  the  record  would  show  beyond  doubt  that  the 
Communists  would  probably  have  come  to  power  in  China  before  the 
end  of  the  war.    That  is  my  answer  to  that  question. 

Senator  Smith.  If  that  had  happened,  it  could  not  have  been  any 
worse  than  it  is? 

Mr.  Alsop.  I  think  it  could  have  been  substantially  worse,  because 
at  that  time  we  were  less  well  prepared  for  the  situation  that  we  find 
lourselves  in  than  we  are  now.  I  think  Indochina^  Burma,  and 
Malaya  would  undoubtely  have  been  swept  into  the  vortex,  sir. 

Mr.  Sourwine.  You  expressed  the  opinion  that  that  question  was 
irrelevant.  Do  you  recall  liaving  told  the  committee  that  one  of  the 
three  contentions  of  Mr.  Budenz  wliich  you  intended  to  prove  false 
was  his  contention  that  the  AVallace  mission  attained  the  objectives 
set  for  it  by  the  Communist  Party  ? 

Mr.  Alsop.  Mr.  Sourwine,  I  shall  answer  that  question  "Yes,"  but 
I  should  like  to  add  something  to  my  answer  if  the  Chairman  will 
permit. 

Senator  Smith.  All  right, 

Mr.  Alsop.  I  have  attempted  to  prove  before  this  committee  that 
nmiess  the  Communist  Party  is  stark,  staring,  raving  mad,  which  I 
-assume  it  is  not,  they  could  not  have  possibly  wanted  anything  but 
the  continuance  in  command  of  General  Stilwell.  He  was  their 
greatest  asset  in  Cliina.  The  sense  of  Mr.  Budenz'  testimony  is  that 
a  recommendation  for  the  dismissal  of  General  Stilwell,  who  was  the 
greatest  Communist  asset  in  China,  attained,  or,  in  fact,  the  actual 
language  is  "Carried  out  the  objective  of  the  Communist  Party." 

I  submit  to  you  that  this  has  some  bearing  on  the  assertion  that  I 
have  made. 

Senator  Watkins.  We  seem  to  have  done  very  well  without  Gen- 
eral Stilwell. 

Mr.  Alsop.  I  would  like  to  say  to  you,  sir,  that  General  Wedemeyer 
wlu)  replaced  General  Stilwell,  came  very  close  to  rescuing  the  situa- 
tion, came  very  close  to  it. 

Mr.  Sourwine.  Mr.  Chairman,  can  I  bring  this  back  for  just  a 
moment,  with  the  permission  of  the  witness  ? 

Senator  Smith.  All  right. 

Mr.  Sourwine.  Mr.  Alsop,  if  you  have  no  knowledge  of  any  Com- 
munist objective,  if  there  was  one,  how  can  you  testify  that  Mr. 
Budenz  swore  falsely  when  he  said  there  Avas  an  objective  and  that  it 
was  attained  ? 

Mr.  Alsop.  Mr.  Sourwine,  if  you  will  examine  the  record,  I  think 
you  will  find  that  I  have  repeatedly  testilied  I  had  no  knowledge  of  the 
objectives  of  the  Communist  Party  in  the  United  States.  I  had  very 
considerable  knowledge,  if  I  may  say  I  had  in  some  measure  expert 
knowledge  of  the  objectives  of  the  Communist  Party  in  China,  which 
was  the  area  to  which  Mr.  Vincent's  action  related.    I  have  as  evidence 


INSTITUTE    OF   PACIFIC   RELATIONS  1477 

of  this  knowledge  this  letter  of  General  Weclemeyer  which  I  offered 
for  the  record  tliis  morning,  in  which  he  states : 

I  felt  that  you  understood  perhaps  better  than  any  other  Amerif^nn  ju  China 
theator  at  that  time  the  full  implications  of  the  Communist  movement. 

Mr.  SouRwiNE.  Mr.  Chairman,  is  that  letter  evidence  of  what  Gen- 
eral Wedemeyer  thought  of  Mr.  Alsop? 

I  have  no  (iesire,  and  I  am  sure  this  committee  has  no  desire,  to 
demean  Mr.  Al sop's  knowledge  on  any  subject. 

I  submit  further  that  the  witness'  statement  just  now  points  up  what 
I  said  before  tJiat  his  repetition  of  the  statement  that  he  knew  nothing 
about  Comnuuiist  objectives  was  not  an  answer  to  the  particular  ques- 
tion which  I  asked,  That  is,  because  he  is  now  qualifying  in  effect  that 
previous  answer. 

Mr.  Alsop.  I  said,  to  quote  myself,  and  I  dislike  having  to  do  so 
all  this  time,  I  knew  nothing  about  the  inner  workings  of  the  Comnm- 
nist  Party  in  the  United  States.  I  specifically  wanted  to  put  it  that 
way  in  order  to  give  you  an  accurate  answer  to  your  question. 

I  knew  very  well  the  Communist  objectives  in  China.  In  the  inter- 
national Communist  movement,  if  it  operates  the  way  it  is  supposed  to 
operate,  the  Communist  Party  in  the  United  States  accepted  the  Com- 
munist Party  objectives  in  China  and  worked  to  further  them. 

As  to  that  I  cannot  testify  from  personal  knowledge.  That  is  pre- 
cisely why  I  so  phrased  my  answer  in  the  way  you  objected. 

Senator  Smith.  Mr.  Sourwine  is  askmg  the  question  :  How  can  you 
testify  to  what  Mr.  Budenz  said  on  that  point  if  you  had  no  knowledge  ? 

Is  that  not  what  you  said? 

Mr.  SouitwiNE.  That  is  the  substance. 

Mr.  Alsop.  Let  me  say  I  had  a  different  kind  of  knowledge  frora 
what  Mr.  Sourwine  specified,  so  I  could  not  reply  I  had  no  knowledge. 

I  k]iew  Communist  objectives  in  China.  I  do  not  know  the  inner 
workings  of  the  American  Communist  Party.  I  assume  it  shared  and 
tended  to  promote  the  objectives  of  the  Chinese  Communist  Party, 
wliich  were  well  known. 

Senator  Watkins.  What  you  are  giving  is  opinion  evidence.  That 
is  your  judgment? 

Mr.  Alsof.  No. 

Senator  Watkins.  You  do  not  pretend  you  were  in  the  confidence 
of  the  Communist  regime  in  Moscow  ? 

Mr.  Alsop.  There  were  Communist  representatives  at  Chungking. 

Senator  Watkins.  Do  you  think  they  would  tell  you  their  exact 
objectives? 

Mr.  Alsop.  They  were  very  frank  about  their  objectives. 

Senator  Watkins.  You  think  they  could  be  believed  ? 

Mr.  Alsop.  As  their  objectives  were  to  get  American  arms  and  to 
force  the  Generalissimo  into  an  unequal  coalition  with  them,  at  least 
you  could  believe  they  wanted  to  go  that  far. 

Senator  Watkins.  I  am  talking  about  the  long-range  objectives. 

Mr.  Alsop.  It  was  very  clear  to  me  that  what  they  wanted  to  do  was 
to  take  power  which  they  have  now  done. 

Senator  Watkins.  It  seems  to  me  from  what  you  have  said  it  is 
largely  opinion  evidence  based  on  what  you  have  read  and  seen  and 
heard. 


1478  INSTITUTE   OF   PACIFIC   RELATIONS 

I  mean  the  same  kind  of  evidence  you  have  been  condemning  in  Mr. 
Budenz, 

Mr.  Alsop.  No,  sir ;  it  is  not  opinion  evidence.  I  saw  Madam  Sun 
Yat-sen  not  so  very  long  after  General  Stilwell  had  been  dismissed. 
She  was,  I  suppose,  a  Communist  agent  in  Chungking  since  she  is  now 
a  member  of  the  executive  committee  of  the  Chinese  Communist  Party. 

Senator  Smith.  She  is  a  sister  of  Madam  Chiang  Kai-shek  ? 

Mr.  Alsop.  Yes. 

Senator  Smith.  They  are  working  both  sides  of  the  street. 

Mr.  Alsop.  They  were  on  all  three  sides  of  the  street. 

Senator  Watkins.  That  is  the  first  time  I  knew  a  street  had  three 
sides. 

Mr.  Alsop.  Madam  Sun  Yat-sen  lamented  in  the  most  vivid  and 
clearest  language  the  loss  of  General  Stilwell  which  she  said  would  be 
irreparable  and  specifically  stated  that  all  the  projects  that  were  being 
matured  under  General  Stilwell's  regime  would  probably  not  go 
through  now  that  this  change  in  command  occurred. 

Senator  Smith.  Let  us  get  back  to  the  question  Mr.  Sourwine  asked 
you,  which  was,  in  substance,  as  I  recall,  how  can  you  say  Mr.  Budenz 
had  not  correctly  stated  the  aims  or  objectives  of  the  Communist 
Party,  or  whatever  it  was  he  was  mentioning  at  the  time,  if  you  did 
not  have  some  knowledge  ? 

If  you  had  no  knowledge,  how  can  you  deny  what  he  said  ? 

Mr.  Alsop.  I  have  been  trying  to  suggest  I  had  a  different  kind  of 
knowledge  which  also  bore  very  directly  on  the  question. 

Senator  Smith.  I  do  not  quite  understand  that  answer. 

Senator  Watkins.  It  seems  to  me  the  questions  and  answers  are 
largely  argumentative  and  matters  of  opinion.  The  committee  will 
have  to  decide  on  whatever  facts  we  can  get. 

Mr.  Sourwine.  I  am  attempting  to  limit  the  questions  to  questions 
which  are  not  argumentative  and  questions  which  are  those  of  fact. 

If  I  can  proceed  with  a  few  questions  and  have  the  witness  answer 
them  briefly  and  succinctly,  I  believe  I  will  be  through. 

I  am  not  intending  to  argue. 

I  will  go  back  to  the  beginning,  if  I  may. 

Do  you  recall  having  stated  that  one  of  the  three  points  that  you 
intended  to  disprove  in  Mr.  Budenz'  testimony  was  that  the  Wallace 
mission  obtained  the  objective  set  forth  by  the  Communist  Party? 

Mr.  Alsop.  I  would  like  to  have  my  testimony  read  on  that  point. 
I  don't  think  I  phrased  it  just  that  way.  I  believe  I  said  that  it  was 
inconceivable  that — well,  I  will  accept  that  statement.  All  right,  go 
on.    I  think  it  is  a  slightly  incorrect  phrasing  of  what  I  did  say. 

Mr.  Sourwine.  Do  you  know  whether  the  American  Politburo  ever 
discussed  or  planned  any  objective  for  the  Wallace  mission  for  the 
possibility  of  controlling  or  influencing  the  Wallace  mission  in  any 
way? 

Mr.  Alsop.  I  have  no  knowledge  of  the  workings  of  the  American 
Politburo. 

Mr.  Sourwine.  Is  that  a  satisfactory  answer  to  the  committee  ? 

Senator  Watkins.  If  that  is  the  truth,  that  is  a  satisfactory  answer. 

Senator  Smith.  Is  that  not  equivalent  to  "no"  ? 

Mr.  Sourwine.  Is  it,  Mr.  Alsop  ? 

Mr.  Alsop.  I  want  it  specified  in  the  record  I  am  talking  about  the 
American  Politburo. 


INSTITUTE    OF    PACIFIC    RELATIONS  1479 

Senator  Watkins.  That  is  what  the  question  is  about. 

Mr.  SouRWiNE.  On  that  point,  Mr.  Alsop,  have  you  any  fact  not 
already  cited  by  you  which  you  want  to  advance  to  the  committee  in 
contravention  to  what  Mr.  Budenz  said  with  respect  to  that  particular 
point  ? 

Senator  Smith.  Will  you  read  that  question  back,  please? 

(The  question  was  read  back  by  the  reporter.) 

Mr.  Alsop.  May  I  inquire  which  point  you  are  talking  about? 

Mr.  SouRwiNE.  Specifically  the  point  that  the  Wallace  mission  ob- 
tained the  objective  set  forth  by  the  Communist  Party. 

Mr.  Alsop.  No  ;  I  have  no  further  evidence  on  that. 

Mr.  SouRwiNE.  Do  you  recall  this  morning,  sir,  stating  that  one  of 
the  three  points  you  intended  to  disprove  was  the  assertion  by  Mr. 
Budenz  that  this  was — that  is  referring  to  the  first  point — because 
the  Wallace  mission  had  been  guided  by  John  Carter  Vincent  and 
Owen  Lattimore? 

Mr.  Alsop.  I  don't  understand  your  question.  You  will  have  to 
read  it  back. 

Mr.  SouRwiNE.  Do  you  recall  that  this  morning  you  cited  as  one 
of  the  three  points  of  ^r.  Budenz  testimony  which  you  would  dem- 
onstrate as  false  the  statement  that  the  Wallace  mission  attained  its 
objective,  the  objective  set  forth  by  the  Communist  Pary,  because  Mr. 
Wallace  was  guided  by  John  Carter  Vincent  and  Owen  Lattimore? 

Mr.  Alsop,  This  question  is  so  confusing  I  would  like  to  reply 
by  suggesting  that  whatever  I  said  this  morning  be  just  read  back 
into  the  record.  I  still  do  not  understand  the  question.  I  don't 
want  to  seem  contentious. 

Senator  Smith.  Let  us  have  it  again  or  have  it  read  back. 

(The  question  was  read  back  by  the  reporter.) 

Mr.  SouRwiNE.  I  am  content  that  the  record  should  stand  on  that. 
I  do  not  mean  to  be  contentious. 

Mr.  Alsop.  I  will  attempt  to  answer  the  question. 

Mr.  SouRwiNE.  I  have  a  memory  that  you  made  three  points  this 
morning  in  this  order :  You  said  that  Mr.  Budenz  had  testified  falsely 
in  at  least  three  regards,  and  you  were  going  to  demonstrate  the  false- 
ness thereof — you  named  them — (1)  that  the  Wallace  mission  attained 
the  objective  set  forth  by  the  Communist  Party;  (2)  because  Mr. 
Wallace  had  been  guided  by  John  Carter  Vincent  and  Owen  Latti- 
more; and,  (3)  that  John  Carter  Vincent  was  a  member  of  the 
Communist  Party. 

Mr.  Alsop.  Let  me  correct  you,  Mr.  Sourwine.  What  I  testified  to 
this  morning  was  that  Mr.  Budenz  had  said  the  Wallace  mission  had 
carried  out  a  Communist  objective.  I  commented  on  that,  that  it 
did  precisely  the  contrary. 

Mr.  Sourwine.  You  mean  what  you  are  challenging  is  Mr.  Budenz' 
statement  that  the  AVallace  mission  attained  a  Communist  objective? 

Mr.  Ai^op.  Exactly. 

Mr.  Sourwine,  You  say  that  that  is  false  testimony  because  the 
Wallace  mission  did  not  obtain  a  Communist  objective? 

Mr,  Alsop.  It  did  precisely  the  contrary. 

Mr.  Sourwine.  Because  it  did  not  obtain  a  Communist  objective? 

Mr.  Alsop.  I  repeat  my  previous  testimony,  it  did  precisely  the 
contrary. 

Senator  Watkins.  It  is  the  same  thing. 


1480  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  SouRWiNE.  It  is  conceivable  that  the  Wallace  mission  could 
have  obtained  both  Communist  and  non-Communist  objectives  in 
different  matters.  The  witness  has  pinned  that  point  down  to  the 
precise  point  which  he  wishes  to  argue,  namely,  that  Mr.  Budenz 
was  wrong  when  he  said  the  Wallace  mission  obtained  an  objective 
set  forth  by  the  Communist  Party. 

Therefore,  the  reverse  is  that  he  did  not  obtain  any  objective  set 
forth  by  the  Communist  Party. 

Mr.  Alsop.  I  believe  that  to  be  true,  sir. 

Mr.  SouBwiNE.  That  is  all  I  wanted. 

Now  the  second  point  which  we  were  discussing  before  was  whether 
you  took  issue  with  Mr.  Budenz  in  his  statement  that  Mr.  Wallace 
was  guided  by  John  Carter  Vincent  and  Owen  Lattimore. 

Mr.  Alsop,  Toward  the  Communist  objective. 

Mr.  SoTJRWiNE.  Yes. 

Mr.  Alsop.  I  did  not  testify  about  Mr.  Lattimore.  I  should  like  to 
have  that  appear  in  the  record. 

In  the  second  place,  I  said  Mr.  Vincent  did  not  guide  Mr.  Wallace 
toward  the  Communist  objective.    Again,  he  did  precisely  the  contrary. 

Mr.  SoTJEWiNE.  The  third  point  of  yours  was  that  Mr.  Budenz  had 
testified  falsely  when  he  said  John  Carter  Vincent  was  a  member  of 
the  Communist  Party. 

Mr.  Alsop.  As  to  that,  I  said  the  overwhelming  weight  of  the  evi- 
dence was  against  it  in  view  of  the  fact  that  Mr.  Vincent  joined  and 
concurred  in  striking  the  heaviest  blow  that  could  be  struck  the  Com- 
munist cause  in  China  at  that  time. 

Mr.  SouRWiNE.  Have  you,  Mr.  Alsop,  any  additional  facts  beyond 
those  already  testified  to  by  you  which  you  want  to  tell  the  committee 
bearing  on  the  question  of  Mr.  Budenz'  veracity  in  either  of  the  last 
two  points  ? 

Mr.  Alsop.  I  don't  think  it  is  necessary  to  add  anything  to  the  testi- 
mony I  have  given  already,  Mr.  Sourwine. 

Senator  Watkins.  Why  not  make  it  broader  and  ask  does  he  know 
any  other  facts  ?  You  ask,  does  he  want  to  tell  ?  He  may  have  some 
he  does  not  want  to  tell.  I  would  like  to  make  it  broad  enough  to 
cover  anything  he  knows. 

Mr.  Alsop.  Don't  put  the  question  in  that  form  because  I  spent  4 
years  in  China. 

Mr.  SouEwiNE.  He  has  an  encyclopedic  knowledge. 

Senator  Watkins.  I  want  to  get  at  the  truth. 

Mr.  Alsop.  I  was  constantly  in  touch  with  tlie  whole  situation  that 
involved  almost  the  history  of  the  Chinese  situation. 

Mr.  Sourwine.  Mr.  Alsop,  during  Mr.  Wallace's  testimony  you  may 
remember  that  he  testified  with  respect  to  your  desire  that  he  should 
print  the  Kunming  cables  and  suggested  that  we  ask  you  about  tliat 
when  you  came  on  the  stand,  and  with  the  record  in  that  state  I  think 
we  should  ask  you :  Is  it  true  that  you  recommended  to  Mr.  Wallace 
on  several  occasions  that  he  release  the  full  text  of  or  print  the 
Kunming  cables  ? 

Mr.  Alsop.  I  recommended  to  him  on  two  occasions,  Mr.  Sourwine, 
first  when  Mr.  Kohlberg  wrote  him  in  August  1950  asking  for  the  text 
of  the  Kunming  cables.  On  that  occasion  Mr.  Wallace  did  not  follow 
mv  advice. 


INSTITUTE    OF   PACIFIC   RELATIONS  1481 

The  second  occasion  was  after  Senator  Lehman  made  something  of 
an  issue  of  this  matter  in  the  Senate.  I  believe  it  was  the  Washington 
Times-Herald  sent  Mr.  Wallace  a  telegram  of  inquiry.  Mr.  Wallace 
telephoned  me  and  told  me  that  he  had  this  telegram  of  inquiry  and 
said  he  was  considering  putting  out  a  statement  giving  the  whole  story 
and  that  there  were  certain  points,  as  he  testified,  relative  to  the 
complex  affairs  of  China  that  he  was  doubtful  about. 

I  said,  after  all,  since  my  columns  had  gotten  him  into  this  trouble, 
I  would  go  up  to  New  York  and  talk  to  him.  It  seemed  to  be  the 
least  I  could  do. 

From  there  on  it  went  on  as  Mr.  Wallace  testified  except  I  did 
urge  him,  of  course,  to  get  the  whole  story  on  the  public  record. 
I  thought  it  very  proper  that  it  should  be. 

Mr.  SouRWiNE.  I  tliink  you  testified  in  executive  session,  and  I 
wish  you  would  repeat  in  substance  now,  with  regard  to  typing  a  text 
out  in  a  hotel  room. 

Mr.  Alsop.  It  was  the  story  that  Mr.  Wallace  told  yesterday.  We 
met  in  iny  room  at  the  Carlton  House,  and  first  of  all  discussed  these 
points  that  Mr.  Wallace  wanted  cleared  up,  and  he  gave  me  an  idea 
of  the  sort  of  statement  he  wanted  to  make.  I  always  travel  with  a 
typewriter,  being  a  newspaperman — in  fact,  I  had  just  finished  writing 
a  column  when  he  turned  up — and  he  wanted  to  get  the  thing  written 
there  and  then,  so  I  sat  down  at  the  typewriter. 

I  don't  like  to  use  the  word  "dictate"  because,  as  I  told  you,  I  can't 
take  dictation  on  the  typewriter.  He  said  what  he  wanted  to  say. 
Broadly  the  language  was  his.  Inevitably  some  of  the  connective 
tissue  was  mine. 

Mr.  SouRwiNE.  Is  it  correct  at  that  time  what  he  was  dictating 
generally  and  what  you  were  putting  down  specifically  was  for  the 
purpose  of  a  press  release  rather  than  transmittal  to  the  White  House  ? 

Mr.  Alsop.  As  far  as  I  can  understand,  testifying  from  my  own 
knowledge,  I  was  not  clear  how  he  intended  to  use  this  statement  of 
the  facts.     I  urged  him  to  mal<:e  it  a  press  release. 

Mr.  SouEWiNE.  What  was  Mr.  John  Carter  Vincent's  position  at 
the  time  he  was  designated  by  Secretary  Hull  to  accompany  Mr.  Wal- 
lace on  the  Asian  trip  ? 

Mr.  Alsop.  I  can't  testify  to  that  on  direct  knowledge,  but  I  believe 
he  was  Chief  of  the  China  Division,  or  whatever  they  called  it  at  that 
time,  of  the  State  Department. 

Mr.  SoTJRwiNE.  Do  you  know  the  reason  why  he  was  designated  by 
the  State  Department  to  accompany  Mr.  Wallace? 

Mr.  Alsop.  I  don't  know  of  direct  knowledge.  He  would  be  the 
obvious  man  to  choose. 

Mr.  SouRWiNE.  Do  you  think  it  is  a  fair  assumption  he  was  there 
for  the  purpose  of  giving  Mr.  Wallace  the  best  advice  that  he  could 
when  Mr.  Wallace  asked  for  it  and  to  give  Mr.  Wallace  the  benefit 
of  his  knowledge  and  information  with  respect  to  China  and  Chinese 
affairs  ? 

Mr.  Alsop.  I  assume  so :  yes. 

Mr.  SouRWiNE.  Do  you  know  whether  he  did  give  Mr.  Wallace  such 
advice? 

Mr.  Alsop.  I  can't  testify  to  that  except  to  the  one  occasion  that  I 
observed. 


1482  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SouBwiNE.  You  were  together  a  good  deal,  were  you  not,  the 
three  of  you  ? 

Mr.  Alsop.  We  were  together,  Mr.  Sour  wine,  but  you  know  what  a 
VIP  program  is  like,  and  if  you  had  seen  Mr.  Wallace's  tendency 
toward  violent  exercise,  you  would  know  that  the  VIP  program  was 
rather  crowded. 

Mr.  SouEWiNE.  I  want  to  be  sure  I  understand  you. 

Mr.  Alsop.  We  were  together,  but  there  was  ahnost  always  someone 
else  there. 

Mr.  SouRwiNE.  Is  it  your  testimony  that  excepting  one  instance  you 
did  not  during  the  time  you  were  together  see  or  hear  Mr.  Vincent  give 
Mr.  Wallace  any  advice  ? 

Mr.  Alsop.  I  would  say  I  am  not  at  all  sure  that  Mr.  Vincent  was 
not  present  when  Mr.  Wallace  consulted  me  or  rather  asked  my  opinion 
— I  think  would  be  a  more  accurate  way  to  put  it — as  to  the  political 
situation  in  China. 

Mr.  SouRwiNE.  You  say  you  are  not  sure  he  was  not  present  ? 

Mr.  Alsop.  Yes ;  he  probably  was  present.  I  can't  say  positively  be- 
cause my  recollection  is  not  exact.  If  he  was  present,  I  am  sure  he 
joined  in  that  conversation,  but  I  have  no  recollection  of  it. 

I  will  say  this,  though,  Mr.  Sourwine,  he  had  no  serious  opportunity 
to  oifer  Mr.  Wallace  advice  exce])t  for  this  very  long  time  when  we 
were  together  at  General  Chennault's  house. 

Mr.  Sourwine.  When  he  did  offer  Mr.  Wallace  advice  did  Mr.  Wal- 
lace listen  to  him  ? 

Mr.  Alsop.  Very  much  because  we  were  all  there  in  the  discussion 
together. 

Mr.  Sourwine.  Mr.  Wallace  gave  him  the  respect  you  would  expect 
to  be  given  under  circumstances  of  that  kind  ? 

Mr.  Alsop.  Yes. 

Mr.  Sourwine.  Do  you  think  that  the  circumstances  were  such  that 
Mr.  Vincent  would  have  been  expected  to  express  his  disapproval  of 
anything  Mr.  Wallace  proposed,  if  he  did  in  fact  disapprove  ? 

Mr.  Alsop.  I  very  much  fear  that  he  would  express  his  disapproval, 
as  I  testified  this  morning,  Mr.  Sourwine,  not  because  he  was  in  any 
way  in  disagreement  with  the  desirability  of  getting  rid  of  General 
Stilwell  but  because  he  thought  it  might  have  been  out  of  line  or  im- 
proper for  Mr.  Wallace  to  take  this  rather  drastic  step  and  involve 
him  in  responsibility  for  a  reconmiendation  which  was  impinging  on 
the  military  and  might  get  the  State  Department  in  a  row  with  the 
War  Department. 

You  know  all  those  considerations  that  inevitably  weigh  on  any 
official's  mind.  He  was  not,  however,  moved  by  those  considerations, 
I  am  happy  to  say. 

Mr.  Sourwine.  Can  you  tell  us,  Mr.  Alsop,  what  part,  if  any,  you 
had  in  preparing  Mr.  Wallace's  statement  or  statements  before  this 
committee?  Was  your  advice  sought  in  regard  to  those,  the  press 
release? 

Mr.  Alsop.  Mr.  Wallace  saw  me  when  he  came  down  here,  and  we 
talked.  I  couldn't  say  specifically  that  my  advice  was  sought  with 
regard  to  the  press  release.  We  talked  about  the  story  that  the  press 
release  covered,  as  we  had  done  before. 

Mr.  Sourwine.  Did  you  talk  about  the  advisability  of  issuing  it? 


INSTITUTE    OF   PACIFIC   RELATIONS  1483 

Mr.  Alsop.  I  urged  him  to  get  the  whole  story  on  the  record ;  yes, 

sir. 

Mr.  SouRWiNE.  On  the  day  that  Mr.  Wallace  testified  in  executive 
session,  did  you  see  him  subsequent  to  his  testimony  ? 

Mr.  Alsop.  Yes,  I  did.  Mr.  Ball,  his  lawyer,  said  he  had  done  a 
good  job,  so  I  congratulated  him. 

Mr.  SouRwiNE.  And  before  he  had  issued  his  release  ? 

Mr.  Alsop.  Yes ;  I  did. 

Mr.  SouRwiNE.  Was  the  release  again  the  subject  of  discussion  be- 
tween you  at  that  time  'i 

Mr.  Alsop.  It  was  the  subject  of  discussion  between  Mr.  Ball  and 
Mr.  Wallace. 

Mr.  SouRWiNE.  I  have  no  more  questions,  Mr.  Chairman. 

Mr.  Morris.  Mr.  Alsop,  do  you  know  whether  Henry  Wallace  visited 
Madam  Sun  Yat-sen  ? 

Mr.  Alsop.  I  believe  he  did.  It  appears  in  one  of  his  cables,  I  think, 
or  some  way  or  other. 

Mr.  Morris.  Do  you  know  how  much  time  he  spent  with  Madam 
Sun  Yat-sen? 

Mr.  Alsop.  I  don't  know. 

Mr.  Morris.  Do  you  know  whether  Madam  Sun  Yat-sen  said  any- 
thing to  influence  him  ? 

Mr.  Alsop.  I  couldn't  possibly  testify.  I  think  all  that  appears  in 
the  record  is  that  she  was  a  woman  of  great  charm,  which  indeed  she 
was,  I  can  assure  you.  She  was  much  the  more  attractive  of  the  three 
sisters. 

Mr.  Morris.  Apart  from  her  political  views  ? 

Mr.  Alsop.  Apart  from  her  political  views,  which  were  not  as 
clearly  apparent  to  the  uninformed  eye  in  those  days  as  they  are  now. 

Mr.  Morris.  Mr.  Alsop,  do  you  know  whether  John  P.  Davies  con- 
curred in  the  recommendation  of  Stilwell's  removal? 

Mr.  Alsop.  He  knew  nothing  about  it  as  far  as  I  know,  Mr.  Morris. 

Mr.  Morris.  Do  you  know  whether  Mr.  John  S.  Service  concurred 
in  the  recommendations  ? 

Mr.  Alsop.  He  couldn't  have  known  anything  about  it  because 
he  wasn't  in  Kunming. 

Mr.  Morris.  Do  you  know  whether  Raymond  Ludden  concurred 
in  the  recommendations  ? 

Mr.  Alsop.  I  have  no  idea.     I  didn't  discuss  it  with  him. 

Mr.  Morris.  Mr.  Chairman,  I  would  like  to  introduce  in  the  record 
at  this  time,  because  of  its  relevancy,  an  article  by  Mao  Tse-tuno-  en- 
titled "China  Needs  Democracy  and  Unity."  The  date  of  this  is 
January  1945,  but  it  was  written  by  Mao  Tse-tung  on  June  12,  1944, 
and  it  appears  in  Political  Affairs,  of  January  1945. 

I  introduce  it  in  the  record  to  set  forth  the  official  Communist  Party 
view  at  that  time  with  respect  to  the  issue  discussed  today.  It  bears, 
on  the  question  that  the  Communist  Party  policy  at  that  time  con- 
centrated on  unity. 

I  would  like  to  have  it  in  the  record  at  this  time. 

Mr.  Alsop.  Certainly  I  would  like  to  put  something  further  in  the 
record,  Mr.  Chairman,  as  a  comment  on  this  article. 

Senator  Smith.  Have  you  identified  just  what  part  you  want  to  go 
in,  Mr.  Morris?     Let  us  get  that  straight. 


1484  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr,  Morris.  Mr.  Chairman,  it  is  only  2%  pages.  I  would  like  the 
whole  thing  to  go  in  the  record. 

Senator  Smith.  All  right. 

(The  document  referred  to  was  marked  "Exhibit  No.  346"  and  is  as 
follows:) 

Exhibit  No.  346 

[From  Tolitical   Affairs,  January  1945 — reprinted  from  People's  War,   Bombay,   August 

20,  1944] 

China  Needs  Democbacy  and  Unitt 

(By  Mao  Tse-tung) 

We  publish  here  an  important  interview  given  on  June  12  by  Mao  Tse-tung, 
chairman  of  the  Chinese  Communist  Party,  to  Chinese  and  foreign  correspondents 
visiting  Yenan,  the  capital  of  the  Shensi-Kansu-Ninghsia  border  region.  In 
view  of  recent  developments  in  China,  it  has  special  world  significance,  throw- 
ing further  light  on  the  position  of  the  Chinese  Communist  Party  and  on  the 
needed  policies  for  effecting  China's  unity  and  liberation. 

"I  heartily  welcome  you  all  coming  to  Yenan.  Our  war  aim  is  the  same 
as  ever,  and  the  same  as  that  of  the  entire  people  of  the  world— to  defeat 
Japanese  militarism,  to  defeat  the  Fascists.  The  whole  of  China,  as  the  whole  of 
the  world,  is  united  on  this  issue. 

"Your  visit  to  Yenan  coincides  with  the  opening  of  the  second  front  in  Europe. 
This  is  an  historic  moment  for  the  whole  world,  because  the  second  front  will 
have  profound  influence  not  only  upon  Europe  but  upon  the  Pacific  and  Chinese 
theaters  of  war  as  well.  China  together  with  the  rest  of  the  world  is  anxious  to 
go  forward,  to  achieve  the  final  victory. 

"All  the  anti-Japanese  forces  in  China  must  now  concentrate  their  entire  efforts 
on  fighting  the  Japanese  militarists  side  by  side  with  this  decisive  offensive  in 
Europe.    The  present  offers  a  great  opportunity  to  us. 

"You  must  all  be  very  anxious  to  learn  about  the  internal  situation  in  China. 
Here  I  shall  speak  a  few  words :  the  attitude  of  the  Chinese  Communist  Party 
toward  Kuomintang-Communist  relations  has  been  defined  over  and  over  again 
in  the  declarations  and  manifestoes  of  the  Chinese  Communist  Party  and  its 
•organs.    I  shall  repeat  them  here  again : 

"The  Chinese  Communist  Party  has  never  wavered  from  its  policy  of  sup-  . 
porting  Generalissimo  Chiang  Kai-shek,  the  policy  of  continuing  the  coopera- 
tion between  the  Kuomintang  and  the  Communist  Party  and  the  entire  people, 
and  the  policy  of  defeating  Japanese  imperialism  and  struggle  for  the  build- 
ing of  free  democratic  China.  This  was  true  in  the  first  stages  of  resistance. 
This  was  true  in  the  second  stage  of  the  war.  This  is  also  true  today,  because 
this  is  and  has  always  been  the  wish  of  the  entire  Chinese  people. 

"But  China  has  draw-backs  and  they  are  serious  ones.  They  can  be  summed 
up  in  one  phrase — the.  lack  of  democracy.  The  Chinese  people  are  badly  in 
need  of  democracy,  because  through  democracy  alone  can  the  anti-Japanese  war 
gain  strength,  China's  internal  and  external  relations  be  put  on  a  proper  basis, 
the  victory  of  the  war  of  resistance  insured  and  the  country  be  built  upon  sound 
foundations.     It  is  democracy  too  that  can  insure  China's  postwar  unity." 

Questioned  by  the  correspondents,  Mao  announced  that  the  negotiations  be- 
tween the  Kuomintang  and  the  Chinese  Communist  Party  have  been  going  on 
for  a  long  time  and  he  hoped  that  there  would  be  fruitful  results  out  of  the 
negotiations.     He  could  add  nothing  new  for  the  present. 
As  for  the  second  front,  he  added : 

"In  future  it  will  be  seen  that  the  repercussions  of  the  second  front  are  felt 
in  the  Pacific  as  well.  Apparently  at  the  moment  it  might  seem  that  its  effects 
on  China  are  not  direct.  But  China's  problems  have  to  be  settled  by  the  Chinese 
themselves.  The  improvement  of  the  situation  outside  by  itself  cannot  solve 
China's  own  problems. 

"In  order  to  defeat  the  common  enemy,  to  achieve  sound  and  peaceful  inter- 
nal relations  and  also  sound  and  peaceful  international  relations,  we  hope  that 
the  National  Covcrnraent  and  the  Kuomintang  and  other  parties  will  carry  out 
a  thoroughly  democratic  policy  in  different  spheres.  The  whole  world  is  in  the 
midst  of  the  war.  The  war  in  Europe  has  entered  a  decisive  phase,  while  de- 
cisive battles  are  also  approaching  in  the  Far  East. 


INSTITUTE    OF   PACIFIC   RELATIONS  1485 

"But  China  is  still  in  need  of  more  democracy,  which  is  necessary  to  further 
the  anti-Japanese  war.  Only  through  democracy  can  our  resistance  be  strength- 
ened. This  has  been  proved  by  the  experience  of  the  U.  S.  S.  R.,  U.  S.  A.,  and 
Great  Britain.  The  experiences  in  the  past  and  particularly  of  the  last  7  years 
of  resistance  have  also  proved  it. 

"Democracy  must  be  all-sided— political,  military,  economic  and  cultural,  as 
also  in  party  affairs  and  internationally.  All  these  spheres  must  be  democra- 
tized and  everything  must  be  unified.  But  this  unity  must  be  based  on  demo- 
cratic foundations. 

"Political  unification  is  necessary,  but  only  on  the  basis  of  freedom  of  press, 
platform  and  organization.  Only  a  government  based  on  democratic  franchise 
can  strengthen  the  political  unification  of  the  country. 

"No  doubt,  unity  in  the  military  sphere  is  more  necessary,  but  even  this  could 
be  achieved  only  on  democratic  principles.  If  there  is  no  democratic  life  inside 
the  army,  democratic  relations  between  the  oflBcers  and  men,  between  soldiers 
and  the  people,  and  also  between  the  different  armies,  then  such  armies  cannot 
be  unified. 

"As  to  economic  democracy,  what  is  meant  is  the  introduction  of  an  economic 
system  which  is  not  based  on  restriction  of  production  and  lack  of  provision  for 
consumption  by  the  vast  mass  of  the  people;  but  one  which  will  give  impetus 
to  further  production  and  insure  proper  distribution  and  uniform  consumption. 

"And  only  democracy  can  promote  the  development  of  education,  thought,  the 
press  and  the  arts.     This  is  cultural  democracy. 

"Party  democracy  means  that  there  should  be  democratic  relations  inside  the 
party  and  among  the  different  parties. 

"I  repeat  that  we  are  today  badly  in  need  of  unity,  but  only  the  unity  that  is 
based  on  democracy  can  be  real  and  abiding.  It  is  true  for  China's  internal 
problems,  but  it  is  equally  true  for  the  coming  League  of  Nations.  Only  by  dem- 
ocratic unification  can  fascism  be  uprooted  and  a  new  China  and  a  new  world 
be  established.  That  is  why  we  stand  for  the  Atlantic  Charter,  and  the  dec- 
larations of  the  Moscow,  Cairo,  and  Tehran  Conferences.  And  these  are  what 
we  expect  of  the  National  Government,  the  Kuomintang  and  other  parties  ana 
other  people's  orcanizations. 

"These  aims  are  what  the  Chinese  Communist  Party  itself  is  striving  to 
achieve.  In  our  efforts  to  defeat  the  Japanese  imperialists,  we,  the  Chinese  Com- 
munists, have  introduced  a  new  spirit  of  democratic  centralism  in  all  our  work. 

"It  is  on  this  basis  that  we  can  build  a  new  China,  defeat  our  enemies  and  build 
in  the  future  sound  and  peaceful  internal  and  external  relations." 

Mr.  Alsop.  Mr.  Chairman,  glancing  briefly  at  this  article,  it  relates 
to  an  address  of  -welcome  to  the  American  liaison  group  going  to 
Yenan,  which  was  the  Communist  capital.  The  testimony  is  already 
in  the  record  that  Mr.  Wallace  was  requested  to  establish  this  liaison 
group  by  General  Stil well's  headquarters. 

As  an  instance  of  the  Communist  view  of  General  Stilwell  at  that 
time  in  China,  I  may  tell  you  that  one  of  the  very  first  results  of 
this  liaison  mission  was  a  formal  offer  by  Mao  Tse-tung  and  other 
Communist  leaders  to  place  their  Communist  armies  under  the  per- 
sonal command  of  General  Stilwell. 

T  think  that  that  is  a  necessary  commentary  on  that  article  and  in- 
dicates very  clearly  that  the  dismissal  of  General  Stilwell  can  hardly 
have  been  in  accord  with  any  Communist  objectives. 

Senator  Smith.  You  had  seen  this  before,  had  you? 

Mr.  Alsop.  I  had  read  that  article  in  Political  Affairs. 

Mr.  Morris.  I  would  like  to  say  that  my  introduction  of  this  in  the 
record  was  completely  apart  from  the  remarks  made  by  Mr.  Alsop. 

Senator  Smith.  I  think  we  understood.  You  wanted  to  put  this 
in,  and  he  had  something  to  say  about  it. 

Mr.  Alsop.  I  think  it  is  a  necessary  commentary  on  the  article. 

Mr.  SouRWiNE.  Mr.  Alsop,  do  you  see  any  difference  between  testi- 
fying you  do  not  believe  a  man  and  testifying  he  is  a  liar? 

Mr.  Alsop.  Yes,  I  see  a  considerable  difference,  Mr.  Sourwine. 


1486  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  SouRWiNE.  With  regard  to  Mr.  Budenz,  have  you  been  attempt- 
ing to  testify  you  did  not  believe  him  or  to  testify  that  he  is  a  liar? 

Mr.  Alsop.  I  am  attempting  to  testify  that  he  is  guilty  of  untruth, 
the  language  I  wrote  to  the  committee,  and  in  the  letter  I  wrote  to 
the  chairman  I  called  him  a  liar.    I  think  he  was. 

Mr.  SouRWiNE.  Not  because  you  disbelieve  him  but  on  the  basis  of 
facts  you  brought  to  the  committee  ? 

Mr.  Alsop.  The  overwhelming  evidence  before  the  committee  indi- 
cates he  lied  on  this  occasion. 

Senator  Smith.  Mr.  Alsop,  there  are  two  or  three  questions  I  should 
like  to  ask  you. 

Now  if  there  are  any  Communists  in  America,  you  agree,  do  you 
not,  that  they  should  be  tracked  down  and  exposed  ? 
Mr.  Alsop.  I  do,  fully.  Senator. 

Senator  Smith.  Now  do  you  have  any  doubt  in  your  mind  that 
there  are  at  least  some  Communists  in  the  country  ? 
Mr.  Alsop.  I  have  none  at  all,  Senator. 
Senator  Smith.  You  have  no  doubt  about  it  ? 
Mr.  Alsop.  None  at  all. 

Senator  Smith.  I  believe  Mr.  Hoover  said  there  are  some  50,000 
or  more  that  he  mentioned. 

Mr.  Alsop.  Something  on  that  order,  I  recall. 

Senator  Smith.  Now  do  you  think  they  should  be  ferreted  out  by 
some  Government  agency,  if  possible  ? 

Mr.  Alsop.  I  agree  with  you  completely.  Senator. 
Senator  Smith.  Do  you  think  that  Congress  as  one  arm  of  the 
Government  should  make  efforts  to  do  that  ? 

Mr.  Alsop.  Senator,  we  are  getting  now  into  a  question  of  my  view 

about  proper 

Senator  Smith.  This  is  very  simple. 

Mr.  Alsop.  I  believe  that  Congress  as  one  arm  of  the  Government 
should  promote  efforts  to  do  that,  but  I  doubt  very  much  whether  a 
legislative  body  is  well  fitted,  in  view  of  the  enormous  burden  placed 
on  the  time  of  the  Members  by  the  business  of  legislation,  to  ferret 
into  a  question  so  complex  and  so  difficult  as  to  the  kind  of  questions 
we  have  been  discussing  here. 

Senator  Smith.  How  would  you  do  it  if  the  legislative  body  did 
not  do  it? 

Mr.  Alsop.  I  think  I  would  possibly  pass  legislation  either  creating 
an  agency  of  a  semijudicial  nature  or  with  some  kind  of  semijudicial 
adjunct  that  would  be  charged  with  doing  it,  or  you  could  put  it  under 
the  FBI  or  in  some  other  waj^,  make  it  an  expert  task. 

I  don't  mean  to  say  for  a  moment  that  I  impugn  the  motives  of 
this  committee  or  the  land  of  efforts  that  are  being  made.  I  just  think 
the  other  procedure  is  a  better  one. 

Senator   Smith.  That  would   require   activity   by  the   legislative 
branch  of  the  Government? 
Mr.  Alsop.  Yes. 

Senator  Smith.  One  way  or  another  it  has  to  be  done  by  the 
legislative  branch  ? 
Mr.  Alsop.  Yes. 

Senator  Smith.  How  do  you  approve  of  the  system  which  we  have 
attempted  to  use  here,  of  conducting  executive  sessions  where  we  think 
that  an  individual's  name  may  be  mentioned  for  the  first  time  in  con- 


institute' OF   PACIFIC   RELATIONS  1487 

nection  with  some  possible  Communist  activities  in  order  that  his 
name  may  be  protected  unless  there  is  real  evidence? 

Mr.  Alsop.  Senator,  in  that  connection  I  want  to  make  two  con- 
fessions, not  just  one. 

First,  I  thought  that  the  system  was  wrong  until  I  experienced  it. 

In  the  second  place,  and  this  relates  to  something  that  Senator 
McCarran  said  this  morning,  I  also  thought  when  I  wrote  my  first 
columns  that  the  committee  itself  had  had  some  part  in  encouraging- 
Mr.  Budenz  to  give  what  seemed  to  me  demonstrably  false  testimony. 
I  would  like  now  to  say  for  the  record  that  after  seeing  Mr.  Budenz 
in  his  second  appearance  on  the  stand,  I  think  it  was  Mr.  Budenz 
that  misled  the  committee  and  not  the  committee  that  encouraged 
Mr.  Budenz.  I  consider  that  Mr.  Budenz  is  the  only  man  who  has 
been  in  any  way  at  fault  in  this  matter. 

Senator  Smith.  Now,  you  realize  in  that  connection  this  committee 
or  any  investigating  committee  cannot  hear  but  one  witness  at  a 
time  ? 

Mr.  Alsop.  I  agree  with  that. 

Senator  Smith.  You  were  present  during  part  of  Mr.  Budenz 
public  testimony  ? 

Mr.  Alsop.  That  is  correct. 

Senator  Smith.  Now,  as  I  recall,  you  were  given  the  privilege  of 
testifying  immediately  following  Mr.  Budenz — were  you  not? — if 
that  suited  your  convenience. 

Mr.  Alsop.  Yes,  and  I  told  Senator  Ferguson  that  it  would  be  im- 
possible, or  I  indicated  to  Senator  Ferguson  that  I  wasn't  ready, 
and  you  can  see  the  mass  of  documentation ;  I  couldn't  testify  in  any 
serious  way  at  that  time. 

Senator  Smith.  So,  you  have  no  fault  to  find  with  the  committee 
hearing  you  today  instead  of  some  preceding  day  ? 

Mr.  Alsop.  None  at  all. 

Senator  Smith.  That  was  for  your  convenience  as  well  as  the 
committee's  ? 

Mr.  Alsop.  Yes,  sir. 

Senator  Smith.  Now,  I  believe  you  did  refer  in  one  of  your  articles, 
which  was  read  on  the  Senate  floor  by  Senator  Lehman,  to  the  fact 
that  the  committee  was  guilty  of  accepting  demonstrably  false  testi- 
mony.    Now,  you  explained  that  a  moment  ago,  as  I  understood. 

Mr.  Alsop.  Yes.  I  would  say  this  also.  Senator:  that  it  seems  to 
me  that  it  makes  the  point  that  I  made  earlier  against  this  kind  of 
procedure:  that  these  facts  as  to  the  real  outcome  of  Mr.  Wallace's 
mission  were  easily  ascertainable  by  a  properly  expert  procedure, 
and  this  testimony,  I  feel  quite  confident,  would  then  have  not  been 
given;  and  it  demonstrates,  I  think,  the  need  for  a  larger  expert 
apparatus  to  do  this  work  less  in  the  glare  of  publicity  and  with  more 
attention  to  the  background  facts,  which  suggests  the  value  or  absence 
of  value  of  the  testimony  of  a  man  who  comes  now  very  close  to  being 
a  professional  informer. 

Senator  Smith.  You  realize — do  you  not — that  the  courts  in  ac- 
ce^^ting  testimony  first  have  witnesses  sworn  ? 

Mr.  Alsop.  Yes,  sir. 

Senator  Smith.  Therefore,  the  court  has  to  rely  upon  the  witness 
being  sworn  and  thereupon  telling  the  truth  ? 

22848— 52 — i)t.  5 16 


1488  INSTITUTE    OF   PACIFIC   RELATIONS 

Mr.  Alsop.  I  agree  with  that. 

Senator  Smith.  That  does  not  guarantee  the  accuracy  or  the  truth- 
fulness of  the  witness  ? 

Mr.  Alsop.  Yes ;  that  is  true. 

Senator  Smith.  You  realize  that  is  what  this  committee  is  attempt- 
ing to  do  in  swearing  the  witness  ? 

Mr.  Alsop.  I  withdraw  any  criticism  of  the  committee. 

Senator  Smith.  You  would  not  say  that  the  committee  was  charge- 
able because  a  witness  swore  falsely  here  ? 

Mr.  Alsop.  I  think  the  procedure  is  at  fault  and  not  the  committee. 

Senator  Smith.  You  would  not  blame  the  committee  if  a  witness 
has  testified  erroneously  or  untruthfully  here  ? 

Mr.  Alsop.  Let  me  put  it  this  way,  Senator :  Your  excellent  system 
of  holding  executive  hearings  is  intended  to  avoid  false  accusations 
against  innocent  persons.  In  the  present  case,  in  my  opinion,  a  wholly 
false  accusation  has  been  brought  against  an  innocent  person,  Mr. 
Vincent. 

I  do  believe,  with  a  different  kind  of  procedure  and  with  a  larger 
range  of  prior  investigation  and  a  lesser  tendency  to  accept,  without 
inquiry,  the  allegations  of  a  man  who  is  by  now  almost  a  professional 
informer,  the  background  of  the  Wallace  mission  to  China  Avould  have 
heen  looked  into ;  and,  if  Mr.  Budenz  had  testified  as  he  did,  he  would 
have  been  subjected  to  more  careful  questioning,  greater  knowledge 
being  in  the  hands  of  the  committee,  and  a  different  impression  would 
in  the  end  have  been  made. 

It  is  all  a  matter  of  procedure. 

Senator  Smith.  You  realize — do  you  not — that  even  in  conduct- 
ing hearings  in  executive  session  the  committee  has  to  be  careful  less 
they  be  accused  of  attempting  to  suppress  information  on  someone? 
That  is  true ;  is  it  not  ? 

Mr.  Alsop.  I  agree  with  that. 

Senator  Smith.  You  agree  generally  that,  where  possible,  where 
there  is  reasonable  basis,  we  may  say,  a  hearing  involving  public 
interest  to  such  extent  as  this  should  be  conducted  in  the  open  where 
everybody  interested  could  see  it  ? 

Mr.  Alsop.  I  agree. 

Senator  Smith.  Now,  I  believe  that  Senator  Lehman  on  the  floor 
of  the  Senate  made  some  statements  to  the  effect  that  some  very  grave 
charges  had  been  made  against  this  committee  and  in  effect  said  it 
was  a  slander  upon  the  Senate.  Now,  those  were  not  your  words; 
were  they  ? 

Mr.  Alsop.  No;  I  think  they  are  a  fair  representation  of  what  I  had 
written  at  that  time,  which  I  have  now  withdrawn  because,  having 
seen  Mr.  Budenz  in  performance  the  second  time,  I  am  convinced  the 
fault  was  his  and  not  the  committee's. 

Senator  Smith.  You  do  not  subscribe  to  the  statement  made  by 
Senator  Lehman  on  the  floor  of  the  Senate  ? 

Mr  Alsop.  Let  me  say,  sir,  I  would  have  to  qualify  my  reply  to 
that  because  Senator  Lehman  gave  a  perfectly  accurate  summary  of 
the  articles  which  I  then  wrote,  and  Senator  Lehman,  if  I  am  correct— 
and  I  have  read  the  record— did  not  in  any  sense  take  responsibility 
tor  the  accuracy  of  my  statements. 

Senator  Smith.  I  understood  that. 


INSTITUTE    OF    PACIFIC   RELATIONS  1489 

Mr.  Alsop.  He  asked  instead  for  an  investigation  of  their  truth  or 
falsehood. 

I  have  withdrawn  the  statement,  withdrawn  any  implication  that 
the  committee  purposely  encouraged  this  false  evidence.  I  say  now 
that  the  man  who  is  at  fault  was  Mr.  Budenz.  So,  I  couldn't  say  that 
Senator  Lehman  didn't  accurately  reproduce  what  I  wrote,  because 
I  think  I  was  in  error. 

Senator  Smith.  Now,  I  have  one  other  question,  and  then  I  am 
through.  Do  you  feel  now,  Mr.  Alsop,  that  there  is  anything  else  you 
Avish  to  say  to  this  committee  or  any  other  evidence  you  wish  to 
introduce  ? 

Mr.  Alsop.  No,  sir. 

Senator  Smith.  Up  to  now  ? 

Mr.  Alsop.  I  think  we  have  covered  the  story  very  completely. 

Senator  Smith.  I  think  you  understood  today,  from  what  the  chair- 
man said,  that  if  something  else  did  develop  which  in  your  mind  ought 
to  be  presented,  and  that  if  you  would  let  us  know,  we  would  be  glad 
to  let  you  present  it  ?    You  understood  that  ? 

Mr.  Alsop.  I  don't  mean  there  isn't  a  lot  of  evidence,  but  it  does 
seem  to  me  the  story  is  complete,  and  there  is  no  use  burdening  the 
time  of  this  committee  with  repetition. 

Senator  Smith.  Then  you  understand  we  will  receive  any  other 
evidence  ? 

Mr.  Alsop.  Yes. 

Senator  Smith.  Now,  do  you  have  any  complaint  against  the  con- 
duct of  this  hearing  so  far  as  you  are  concerned  ? 

Mr.  Alsop.  On  the  contrary,  I  think  it  has  been  most  fair. 

Senator  Smith.  Don't  you  forget  your  column  is  carried  in  my 
home-town  paper. 

The  committee  will  be  in  recess  until  10  o'clock  tomorrow  morning. 

(Wliereupon,  at  4 :  30  p.  m.,  the  hearing  was  recessed  until  10  a.  m. 
;Priday,  October  19,  1951.) 


INSTITUTE  OF  PACIFIC  EELATIONS 


FRIDAY,   OCTOBER   19,    1951 

United  States  Senate, 
Subcommittee  To  Investigate  the 
Administration  of  the  Internal  Security 
Act  and  Other  Internal  Security  Laws  of  the 

Committee  on  the  Judiciary, 

Washington^  D.  C. 

The  subcommittee  met  at  11 :25  a.  m.,  pursuant  to  recess,  in  room 
424,  Senate  Office  Building,  Senator  Arthur  V.  Watkins  presiding. 

Present:    Senators  Smith,  Ferguson,  and  Watkins. 

Also  present :  Eobert  Morris,  subcommittee  counsel,  and  Benjamin 
Mandel,  director  of  research. 

Senator  Watkins.  The  hearing  will  come  to  order. 

Mr.  Morris.  Admiral  Cooke  has  been  sworn  in  executive  session. 
I  think  it  will  be  well  to  swear  him  again  for  this  public  session. 

Senator  Watkins.  Do  you  solemnly  swear  the  testimony  given 
in  the  matter  now  pending  before  the  committee  will  be  the  truth, 
the  whole  truth,  and  nothing  but  the  truth,  so  help  you  God? 

Mr,  Cooke.  I  do. 

TESTIMONY  OF  CHARLES  MAYNARD  COOKE,  ADMIRAL,  UNITED 

STATES  NAVY  (RETIRED) 

Mr.  Morris.  Will  you  give  your  full  name  and  residence  to  the 
reporter  ? 

Mr.  CooKE.  Charles  Maynard  Cooke.  My  permanent  residence  is  in 
Sonoma,  Calif.    The  last  2  years  I  have  been  living  in  Formosa. 

Mr.  Moreis.  What  is  your  present  military  status,  Admiral  Cooke  ? 

Mr.  Cooke.  I  am  a  retired  admiral,  United  States  Navy. 

Mr.  Morris.  Wlien  did  you  retire  from  the  United  States  Navy? 

Mr.  Cooke.  The  1st  of  May  1948. 

Mr.  Morris.  Admiral  Cooke,  will  you  tell  us  what  your  present 
occupation  is? 

Mr.  Cooke.  My  present  occupation  is  that  I  have  just  terminated 
a  tour  of  service  as  an  employee  of  the  Commerce  International- 
China,  which  has  been  furnishing  technical  services  to  the  Chinese 
in  Formosa. 

Mr.  Morris.  Is  that  an  American  corporation,  Admiral  Cooke? 

Mr.  Cooke.  Yes. 

Mr.  Morris,  Wliat  was  your  position  with  that  corporation? 

Mr.  Cooke.  I  occupied  a  position  of  coordinator  of  this  group  of 
technicians  that  served  in  Formosa. 

Mr.  Morris.  Who  were  those  technicians,  Admiral  Cooke? 

1491 


1492  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Cooke.  They  were  some  retired  officers,  some  Reserve  officers, 
some  ex-officers  of  tlie  services  of  the  United  States,  and  some  enlisted 
men,  too. 

Mr.  Morris.  They  are  all  United  States  citizens  ? 

Mr.  Cooke.  Yes. 

Mr.  Morris.  They  were  all  employees  of  Commerce  International- 
China? 

Mr.  Cooke.  Yes;  CIC,  as  it  is  referred  to. 

Mr.  Morris.  Admiral  Cooke,  have  you  ever  been  in  the  employ  of 
the  Chinese  Govermnent? 

Mr.  Cooke.  No,  sir. 

Mr.  Morris.  Admiral  Cooke,  I  wonder  if  you  will  give  us  a  brief 
sketch  of  3^our  experience  in  the  United  States  Navy  for  background 
purposes  ? 

Mr.  Cooke.  At  the  time  of  Pearl  Harbor  I  was  commander  of  the 
Pennsylvania^  and  shortly  after  Pearl  Harbor  I  came  to  Washington, 
first  as  assistant  chief  of  staff  in  charge  of  plans  under  Admiral  King, 
who  was  the  commander  in  chief  of  the  Navy. 

Later  I  became  deputy  chief  of  staff,  and  later  the  chief  of  staff  to 
Admiral  King,  in  which  capacity  I  was  serving  when  the  war 
terminated. 

During  that  period  I  served  as  chief  strategic  and  policy  adviser 
during  the  entire  war  to  Admiral  King  and  served  with  him  in  the 
Joint  Chiefs  of  Staff  meetings,  the  Combined  Chiefs  of  Staff  meet- 
ings, and  the  meetings  of  the  heads  of  the  governments  around  the 
world. 

During  1945,  as  the  war  was  terminating,  I  participated  in  the 
formulation  of  the  policy  of  the  United  States  regarding  the  Far 
East. 

Do  you  want  me  to  go  on  with  that  ? 

Mr.  Morris.  Yes ;  I  wish  you  would  develop  that  briefly. 

Mr.  Cooke.  And  we  recognized  that  the  dominating  power  in  Asia — 
Japan  was  about  to  be  defeated,  and  there  was  great  danger  that 
Russia  would  move  in.  So  our  view  was  that  the  Chinese  power  had 
to  build  up,  that  China  had  to  be  made  a  prosperous  nation. 

In  carrying  out  that  policy,  we  expressed  our  views  or  formulated 
our  views  in  the  Joint  Chiefs  of  Staff,  including  the  original  drafting 
of  a  law  to  reconstitute  the  Chinese  Navy.  China  was  about  to  end 
up  the  war  with  a  fairly  good-sized  army,  somewhat  of  an  air  force, 
and  zero  navy. 

So  it  was  the  view  of  the  Chiefs  of  Staff  that  the  United  States 
should  prepare  legislation  to  build  up  their  navy,  in  which  I  par- 
ticipated in  doing.  About  December  of  1945  I  terminated  my  duty 
with  Admiral  King  and  proceeded  to  China  in  command  "of  the 
Seventh  Fleet,  which  was  our  fleet  stationed  in  Cliinese  waters,  and 
was  in  command  of  that  fleet  for  about  2  years  and  2  months. 

During  that  period  I  was  directly  concerned  with  building  up  a 
Chmese  Navy  under  orders  of  the  Navy  Department  and  later  in  ac- 
cordance with  the  terms  of  the  Law  502.  which  was  passed  by  the  Con- 
gress to  establish  a  Chinese  Navy,  passed  July  16, 1946,  but  formulated 
before  I  had  left  Washington  in  general  terms. 

I  was  in  command  of  all  our  combat  forces  in  China  after  the  de- 
parture of  General  Wedemeyer  about  April  1946,  which  included  our 
marines  in  Tsmgtao,  Tientsin,  and  Peiping.     In  February  1947  I 


INSTITUTE    OF   PACIFIC   RELATIONS  1493 

was  called  back  to  confer  with  the  Navy  Department  and  the  State 
Department  about  our  policy  regarding  marines  staying  in  Tsingtao. 

At  that  time  I  also  conferred  with  the  President  about  the  situation 
out  there.  I  proceeded  back  to  China  and  completed  my  duty  there  in 
February  1948.  I  was  due  to  retire  for  age  in  1948  and  came  back 
and  retired  on  the  1st  of  May  1948. 

After  retirement  I  was  called  on  to  talk  about  the  situation  in  China 
over  various  parts  of  the  United  States,  which  I  did,  until  about  Octo- 
ber 1949.  At  that  time  the  Chinese  People's  Eepiiblic  was  formed, 
and  on  October  3  the  Russians  recognized  it. 

In  my  opinion  the  situation  had  then  become  extremely  critical  to 
the  United  States  in  that  there  might  be  the  loss  of  Formosa  where 
the  Chinese  Nationalist  Government  was  moving,  either  preceded  or 
followed  by  recognition  of  Communist  China,  which  from  my  experi- 
ence that  I  had  had  dealing  with  the  situation  in  the  Far  East  for  a 
number  of  years  would  be  very  disastrous. 

I  had  been  recommending  for  a  long  period  a  military  mission  out 
there,  which  was  not  established 

Mr.  MoRBis.  This  is  now  what  year,  Admiral  Cooke? 

Mr.  CooKE.  This  is  now  after  October  3,  1-949,  when  the  Russians 
recognized  the  People's  Government  of  China. 

Senator  Ferguson.  Where  were  you  stationed  then.  Admiral? 

Mr.  CooKE.  I  was  retired  then.  I  had  retired  the  Ist  of  May,  and 
I  was  living  in  California,  and  I  proceeded  east  here  to  go  into  this 
question  of  what  could  be  done  about  that.  So  I  went  into  the  ques- 
tion of  the  Chinese  themselves  hiring  officers,  retired  officers,  under 
permissive  action  of  the  President. 

Senator  Ferguson.  They  had  to  have  consent  to  waive  the  law 
which  prohibits  that? 

Mr.  CooKE.  The  Constitution  says  that  they  must  have  the  sanc- 
tion of  Congress.  The  sanction  of  Congress  existed,  but  through  the 
discretion  of  the  President. 

Senator  Ferguson.  That  is  the  point,  that  you  had  to  get  the  Presi- 
dent to  exercise  the  discretion  ? 

Mr.  Cooke.  That  is  right. 

Senator  Ferguson.  You  did  not  have  to,  but  the  Chinese  Govern- 
ment if  they  wanted  to  have  a  mission  of  American  people? 

Mr.  Cooke.  Well,  not  necessarily  the  Chinese  Government,  Senator ; 
just  so  it  existed. 

Senator  Ferguson.  It  could  not  exist  if  somebody  did  not  do  it? 

Mr.  Cooke.  That  is  right.  Actually  a  recommendation  to  that 
effect,  that  one  be  formed,  was  sent  in  to  the  State  Department  by 
Mr.  Pauley. 

Senator  Ferguson.  Where  were  you  when  General  Marshall  went 
on  his  mission  in  1946  ? 

Mr.  CooKE.  He  went  in  1945,  Senator.  I  was  just  terminating  my 
duty  with  the  commander  in  Washington,  and  shortly  to  proceed 
myself — I  arrived  out  there  about  a  month  after  General  Mai-shall. 

Senator  Ferguson.  Did  you  see  him  in  China  ? 

Mr.  Cooke.  Yes,  sir. 

Senator  Ferguson.  Did  you  have  any  conversation  with  him  ? 

Mr.  Cooke.  Yes,  sir ;  I  did. 

Senator  Ferguson.  As  to  his  mission  ? 


1494  INSTITUTE    OF    PACIFIC    RELATIONS 

Mr,  Cooke.  I  had  to  do  with  the  general  business  of  what  the  Navy 
was  doing.  When  I  first  went  out  there  we  were  helping  the  Chinese 
to  establish  navy  yards  there  that  would  assist  us  in  maintaining  our 
own  ships  on  minor  overhaul  and  repair;  and  then  I  had  to  do  with 
him  in  connection  with  the  Anping  incident.  I  had  to  do  with  him 
in  connection  with  the  building  up  of  the  Chinese  Navy  itself,  and  I 
liad  to  do  with  him  in  connection  with  the  embargo  and  with  our  policy 
in  China. 

Senator  Ferguson.  You  would  have  to  know  what  the  policy  was 
in  China  in  order  that  you  might  carry  out  your  duties  as  an  admiral 
for  the  United  States  Navy  ? 

Mr.  CooKE.  Yes,  sir. 

Senator  Ferguson.  Did  you  find  out  what  our  mission  was  ?  If  so, 
what  was  it? 

Mr.  CooKE.  Our  general  mission  was  to  assist  the  Chinese  in  accept- 
ing the  surrender  of  the  Japanese,  to  reconstitute  a  free  China,  a 
strong  China,  and  to  avoid  participating  in  fraticidal  warfare. 

Senator  Ferguson.  What  were  you  to  do  with  the  Nationalist  Army 
in  China  ? 

Mr.  CooKE.  Of  course,  I  didn't  have  much  to  do  with  the  Army 
myself. 

Senator  Ferguson,  As  to  the  mission,  your  conversation  with 
General  Marshall. 

Mr.  Cooke.  I  can  say  this,  Senator.  In  the  beginning  I  was  work- 
ing hard  to  reestablish  the  Chinese  Navy.  There  seemed  to  be  a  little 
bit  vagueness  about  what  we  were  to  do  with  the  Chinese  Navy,  and 
General  Marshall  at  one  time  asked  me  how  did  I  know  that  it  was 
the  policy  of  the  United  States  to  reconstitute  the  Chinese  Navy.  My 
answer  was  that  the  Congress  had  passed  a  bill  to  that  effect,  and  I 
assumed  it  to  be  the  policy  for  China.  There  was  no  further  answer 
to  that. 

Senator  Ferguson.  So  that  ended  that? 

Mr.  Cooke.  Yes,  sir. 

Senator  Ferguson.  What  about  the  Army? 

Mr.  Cooke,  There  were  no  Army  combat  troops  there,  but  there  was 
a  sort  of  mission  whose  chief  function  was  to  advise  the  Chinese 
Government  about  the  establishment* of  their  Army  command  in  Nan- 
king, In  other  words,  so  far  as  I  know,  they  participated  in  no  opera- 
tional advice  to  the  Chinese  Army, 

Senator  Ferguson,  Did  you  know  anything  about  the  consolida- 
tion of  the  Nationalists  and  the  Communists  in  one  government? 

Mr,  CooKE.  Yes,  sir. 

Seantor  Ferguson.  Was  that  discussed  with  you  ? 

Mr.  Cooke.  Yes,  sir. 

Senator  Ferguson,. What  was  said? 

Mr,  Cooke.  I  was  more  immediately  involved  in  the  operation  to 
bring  Chinese  divisions  into  the  Chinese  Nationalist  Army.  There 
were  about  20  divisions,  as  I  remember  it,  of  Communist  divisions, 
that  would  be  brought  into  the  Chinese  Army,  and  to  carry  that  out 
there  were  American  field  officers  established  around  the  various  parts 
of  China  and  an  executive  headquarters  established  in  Peiping  con- 
sisting of  the  representatives  of  the  Communists,  the  Nationalist 
Government,  and  of  the  United  States.  That  was  under  General 
Marshall,  and  immediately  under  Mr.  Walter  Robertson  who  was  a 


INSTITUTE    OF   Jt-ACIFIC   RELATIONS  1495 

Minister  representing  the  United  States  and  stationed  in  Peiping. 

Now  I  knew  about  this  in  general,  and  I  got  to  know  about  it  very 
acutely  in  particular  because  we  had  marines  in  Peiping,  supporting 
them,  we  had  marines  in  Tientsin.  We  moved  supplies  to  support 
this  mission,  and  the  marines,  too,  of  course,  from  Tientsin  to  Peiping. 

On  the  29th  of  July  1946  our  Marine  convoy  of  trucks  moving  sup- 
plies up  there,  guarded  by  42  marines,  was  ambushed  by  about  600 
Communists  and  4  of  them  killed,  including  the  officer  in  command. 

Mr.  Morris,  They  were  under  your  command,  were  they,  Admiral 
Cooke? 

Mr.  CooKE.  Their  mission  was  to  convoy  supplies  from  Tientsin  to 
42  in  the  group. 

Mr.  Morris.  What  was  their  mission? 

Mr.  CooKE.  Their  mission  was  to  convoy  supplies  from  Tiensin  to 
Peiping  to  support  the  executive  headquarters  and  our  marines  sta- 
tioned in  Peiping. 

Mr.  Morris.  The  executive  headquarters  were  the  National  Govern- 
ment headquarters? 

Mr.  CooKE.  It  was  the  headquarters  established  under  the  general 
direction  of  General  Marshall.  It  had  Nationalist  representatives, 
Communist  representatives,  and  United  States  representatives.  It 
was  for  the  purpose  of  bringing  these  two  armies  together  to  form 
a  combined  army,  you  might  say,  under  the  Chinese  Government. 

Senator  Ferguson.  Why  did  you  not  accomplish  that? 

Mr.  Cooke.  Never  could  get  an  agreement.  Of  course,  it  was  not 
under  me,  but  there  never  was  any  agreement  on  it.  The  terms  of  it 
w^ere  never  completely  agreed  to. 

Senator  Ferguson.  You  went  there  after  Wedemeyer  left? 

Mr.  Cooke.  No,  sir ;  I  went  there  before. 

Senator  Ferguson.  How  long  after  you  got  there  did  he  leave  ? 

Mr.  Cooke.  About  3  months. 

Senator  Ferguson.  About  3  months? 

Mr.  CooKE.  Yes,  sir. 

Senator  Ferguson.  Do  you  know  anything  about  the  supply  of 
ammunition  to  the  Nationalist  troops  ? 

Mr.  CooKE.  Yes.  After  he  left,  around  the  1st  of  August  1946, 
the  supply  was  cut  off. 

Senator  Ferguson.  Why? 

Mr.  CooKE.  Well,  I  didn't  do  it,  and  I  can't  say  why. 

Senator  Ferguson.  Did  General  Marshall  ever  discuss  that  with 
you  ? 

Mr.  Cooke.  He  discussed  it  in  general  without  making  too  much 
comment  except  that  he  made  the  observation  to  me  that  we,  mean- 
ing the  United  States,  had  armed  the  Chinese,  and  now  we  were  dis- 
arming them.  In  other  words,  we  had  undertaken  to  equip  thirty- 
odd  Chinese  divisions,  equip  them  w4th  guns  and  things  of  that  kind, 
and  then  we  stopped  the  How  of  ammunition  and  made  a  complete 
embargo,  so  we  didn't  supply  it  or  wouldn't  let  them  buy  it  for  a 
period  of  about  10  months,  I  believe.  He  just  made  that  observation 
to  me,  that  is  all.    He  wasn't  called  on  to  do  it,  but  he  did  do  it. 

Senator  Ferguson.  It  amounted  to  disarming  them  because  they 
were  not  getting  the  ammunition  for  the  weapons  we  had  supplied 
them? 

Mr.  Cooke.  That  is  right. 


1496  INSTITUTE   OF   PACIFIC   RELATIONS 

Senator  Ferguson.  Wliat  effect  would  the  arming  of  the  National- 
ists have  had  as  far  as  the  Communists  were  concerned? 

Mr.  Cooke.  Of  course,  the  Communists  were  being  very  well  sup- 
plied in  Manchuria  by  the  Kussians  from  arsenals  and  from  captured 
Japanese  guns  and  ammunition.  We  were  practically  certain  that  was 
going  on,  and  of  course  in  our  white  paper  reported  from  our  diplo- 
matic representatives  in  Moscow  that  it  was  going  on. 

Senator  Ferguson.  So  we  knew  that  the  Communists  were  getting 
arms  and  ammunition  and  also  it  was  our  policy,  we  put  it  into  effect, 
to  put  an  embargo  on  the  Nationalists  ? 

Mr.  Cooke.  Tliat  is  right. 

Senator  Ferguson.  And  General  Marshall  had  told  you  that  of 
course  that  amounted  to  the  disarming  of  the  Nationalists  ? 

Mr.  CooKE.  Yes. 

Senator  Ferguson.  There  was  no  doubt  about  that,  either? 

Mr.  Cooke.  I  must  interject  there ;  whether  General  Marshall  con- 
sidered the  Kussian  and  Japanese  arms  were  going  to  the  Communists 
I  don't  know. 

Senator  Ferguson.  But  you  said  our  Government  knew  it. 

Mr.  Cooke.  Our  Government  knew  it  because  I  have  now  read  it 
since  then  in  the  white  paper  that  it  was  reported  to  them ;  yes. 

Senator  Ferguson.  But  the  part  that  General  Marshall  told  you 
was  that  it  amounted  to  a  disarming  of  the  Nationalists  ? 

Mr.  Cooke.  That  is  right. 

Senator  Ferguson.  In  your  opinion,  is  that  correct? 

Mr.  CooKE.  Largely  so ;  yes. 

Senator  Ferguson.  If  a  man  has  a  rifle  and  he  has  no  ammunition 
for  it,  and  you  have  the  ammunition,  you  are  disarming  him,  are  you 
not? 

Mr.  Cooke.  You  can't  make  it  quite  that.  Of  course,  they  had  am- 
munition on  hand.  It  was  gradually  getting  very  scarce,  and  eventu- 
ally to  a  point  almost  of  desperation,  but  not  immediately. 

Senator  Ferguson.  So  in  effect  in  the  end  it  disaraied  them ;  is 
that  it,  or  what  are  the  facts  ? 

Mr.  Cooke.  Disarmament  as  far  as  our  guns  were  concerned.  They 
had  guns  of  their  own  manufacture  they  had  been  fighting  the  Japs 
with,  and  they  had  their  arsenals.  They  were  still  using  their  own 
guns  and  their  own  ammunition,  but  the  divisions  that  were  equipped 
with  American  guns  were,  as  long  as  they  used  those  guns,  in  effect 
gradually  disarmed. 

Senator  Ferguson.  How  many  divisions  were  armed  with  American 
weapons  ? 

Mr.  Cooke.  I  can't  answer  that.  The  program  was  never  completed, 
and  just  what  the  actual  number  was  I  don't  know. 

Senator  Watkins.  Did  you  say  a  moment  ago  that  there  were  thir- 
ty-odd divisions? 

Mr.  Cooke.  That  was  the  program. 

Mr.  Morris.  Was  that  Wedemeyer's  program? 

Mr.  Cooke.  It  was  formulated  during  his  command,  and  he  was 
acting  chief  of  staff  to  Chiang  Kai-shek. 

Mr.  Morris.  Now,  that  program  and  that  mission  which  was  headed 
by  General  Wedemeyer  had  the  assignment  of  arming  39  Chinese 
divisions  ? 


INSTITUTE    OF   PACIFIC   RELATIONS  1497 

Mr.  Cooke.  I  remember  it  was  thirty-odd.    It  could  be  39 ;  yes. 

Mr.  Morris.  Did  that  indude  any  Chinese  Communist  divisions? 

Mr.  Cooke.  Not  at  that  time. 

Mr.  Morris.  So  that  was  the  policy  in  China  when  you  arrived 
there ;  is  that  right,  Admiral  Cooke  ? 

Mr.  Cooke.  That  is  right. 

Mr.  Morris.  Subsequent  to  that  time  the  Marshall  mission  arrived 
in  China? 

Mr.  Cooke.  No;  the  Marshall  mission  arrived  there  before  I  did. 

Mr.  Morris.  Subsequent  to  General  Wedemeyer's  mission  ? 

Mr,  Cooke.  Well,  General  Wedemeyer  was  still  there.  There  is 
an  overlap  there.  General  Wedemeyer  was  still  there.  He  was  in 
command  of  our  ground  forces  up  until  about  April  1946. 

Mr.  Morris.  Will  you  explain  the  transition  between  the  prevailing 
policy  of  General  Wedemeyer  and  the  subsequent  prevailing  policy 
of  General  Marshall? 

Mr.  Cooke.  Well,  after  General  Marshall's  arrival  there  in  De- 
cember 1945  it  is  my  opinion  that  General  Wedemeyer  was  working 
to  support  General  Marshall's  mission  exactly  the  way  he  wanted  it 
supported.  Now  we  actually  moved  troops,  my  ships  moved  troops 
about,  we  had  to  take  Japanese  back  to  the  mainland,  and  we  moved 
Chinese  troops  to  receive  the  surrender  of  Japanese  troops,  and  we 
also  moved  some  Chinese  troops  to  Manchuria. 

Senator  Ferguson.  Chinese  Nationalist  troops? 

Mr.  Cooke.  Yes,  sir. 

Mr.  Morris.  When  did  the  plan  first  arise  to  bring  about  a  coali- 
tion between  the  Chinese  Nationalist  armies  and  the  Chinese  Com- 
munist armies?    How  did  that  develop,  Admiral  Cooke? 

Mr.  Cooke.  I  can't  speak  positively  of  that.  My  impression  is  that 
that  developed  about  January  1946. 

Mr.  Morris.  You  were  in  China  at  that  time,  were  you  not? 

Mr.  Cooke.  Yes ;  but  I  didn't  have  anything  necessarily  directly  to 
do  with  that. 

Mr.  Morris.  But  you  did  know  that  the  plan  was  going  on  ? 

Mr.  Cooke,  Yes. 

Mr.  Morris.  The  thing  you  are  uncertain  about  is  the  particular 
time  when  it  commenced  ? 

Mr,  Cooke.  That  is  right. 

Mr.  Morris,  Admiral  Cooke,  will  you  develop  for  us  how  that  plan 
of  bringing  about  a  coalition  or  merger  between  the  Chinese  Nation- 
alist armies  and  the  Chinese  Communist  armies  was  attempted  ? 

Mr,  Cooke,  There  was  an  arrangement  set  up  in  negotiations  be- 
tween the  Communists  and  the  Nationalists  and  General  Marshall  to 
bring  in  a  certain  number  of  Communist  divisions  into  the  Chinese 
Government  army.  The  proportion  I  am  not  sure  of  here,  it  may 
have  been  1  to  4, 1  to  3,  or  1  to  2, 

I  did  know,  but  I  have  forgotten  the  exact  figures  now.  There  were 
United  States  Army  officers  stationed  around  various  parts  of  China, 
North  China,  where  this  would  actually  be  implemented.  We  had 
to  do  a  certain  amount  of  supplying  them.  Just  the  exact  workings 
of  that  I  can't  testify  to. 

Senator  Ferguson.  What  instructions  did  you  get  from  General 
Marshall  on  that? 


1498  INSTITUTE   OF   PACIFIC   RELATIONS 

Mr.  Cooke.  I  had  nothing  to  do  with  that  except  to  support  it 
logistically.  It  had  nothing  to  do  with  the  Navy  at  all,  so  I  had 
nothing  to  do  with  that,  the  actual  implementation. 

Mr.  Morris.  One  of  the  consequences  of  that  was  an  embargo,  was 
it  not.  Admiral  Cooke  ? 

Mr.  Cooke.  Well,  that  is  just  a  question  of  opinion.  The  embargo 
eventually  took  place  quite  a  bit  later ;  it  had  to  do  not  necessarily 
with  just  the  armies,  it  had  to  do  with  the  bringing  of  the  two  to- 
gether, as  I  understood  it,  and  the  embargo  actually  operated  as  a 
sort  of  pressure  on  the  Nationalist  Government  to  conform  to  the 
recommendations  that  had  been  given  them  as  to  what  they  should 
do. 

I  mean  that  is  opinion  here  now.  I  didn't  sit  in  the  councils  to  know 
the  answer  to  that. 

Senator  Ferguson.  But  the  embargo  took  place? 

Mr.  Cooke.  The  embargo  took  place  definitely. 

Mr.  Morris.  It  is  not  yoBr  opinion  that  the  embargo  took  place? 

Mr.  CooKE.  I  know  the  embargo  took  place. 

Mr.  Morris.  What  was  the  nature  of  the  embargo.  Admiral  Cooke  ? 

Mr.  CooKE.  The  United  States  would  supply  no  combat  equipment 
of  any  kind,  including  ammunition,  and  they  wouldn't  allow  the 
Chinese  to  buy  any  in  the  United  States.  Eventually  I  think  they 
bought  some  spare  parts  and  maybe  some  transport  planes,  no  combat 
planes  but  transport  planes  like  C-47's,  and  C-46's. 

Mr.  Morris.  Will  you  tell  us  when  this  embargo  went  into  effect? 

Mr.  CooKE.  I  can't  tell  you  exactly,  but  it  was  about  the  1st  of 
August,  1946. 

Mr.  Morris.  How  long  did  that  stay  in  force  ? 

Mr.  CooKE.  Until  the  following  May. 

Mr.  Morris.  May  1947? 

Mr.  CooKE.  Yes. 

Mr.  Morris.  During  the  time  that  that  was  in  force  was  the  Chinese 
Government  able  to  buy  any  equipment  in  the  United  States  ? 

Mr.  CooKE.  Not  so  far  as  I  know.    I  am  fairly  sure  not. 

Mr.  Morris.  Did  the  United  States  send  any  equipment  to  the 
Chinese  Government  during  that  period? 

Mr.  Cooke.  No  combat  equipment.  Let  me  modify  that.  That  is 
a  question  that  comes  up  here  about  delivery  of  this  obsolete  ammuni- 
tion in  Tsingtao  in  February  of  1947,  which  is  an  item  I  can  go  into 
if  you  wish  me  to  do  it  at  this  time. 

Mr.  Morris.  Yes. 

Senator  Ferguson.  I  would  like  to  know. 

Mr.  CooKE.  Of  course,  the  number  of  marines  in  China  gradually 
decreased.  They  had  ammunition  there  for  carrying  on  combat 
operations,  much  more  than  they  needed,  and  some  of  it  getting  old 
and  beyond  the  standards  acceptable  to  the  United  States.  So,  some 
of  this  obsolescent  ammunition  in  Tsingtao  became  due  for  disposal. 

I  didn't  want  to  haul  it  through  the  town  of  Tsingtao  in  order  to 
load  it  on  ships,  and  the  only  other  way  to  dispose  of  it  was  just  dump 
it  somewhere  or  to  blow  it  up.  Blowing  up  thousands  of  rounds  of 
ammunition  is  not  a  very  easy  thing. 

So  when  I  came  back  in  1947  to  talk  to  the  State  Department  here 
and  the  Navy  Department  about  the  number  of  marines  in  Tsingtao, 


INSTITUTE    OF   PACIFIC   RELATIONS  1499 

the  question  also  came  up  about  this  ammunition,  as  to  whether  to 
dump  it  or  not. 

Senator  Ferguson.  How  much  was  there  of  it? 

Mr.  Cooke.  I  can't  remember,  Senator.  It  was  something  that  is 
substantial. 

Senator  Ferguson.  It  is  a  large  number  ? 

Mr.  Cooke.  It  is  a  large  number.  It  wouldn't  run  the  Army  a 
definite  period,  but  it  was  a  substantia]  amount.  It  was  ground  force 
ammunition. 

Senator  Ferguson.  Why  did  you  not  give  it  to  the  Chinese  Na- 
tionalists that  had  weapons  in  which  to  use  it? 

Mr.  Cooke.  I  am  going  into  that. 

So,  then,  we  had  this  conference  with  the  State  Department,  includ- 
ing General  Marshall  and  Mr.  Vincent. 

Senator  Ferguson.  That  is  John  Carter  Vincent? 

Mr.  Cooke.  John  Carter  Vincent. 

Senator  Ferguson.  What  was  his  position  with  the  State  Depart- 
ment at  that  time,  if  you  know  ? 

Mr.  Cooke.  He  was  the  Assistant  Secretary  for  Far  Eastern 
Affairs,  the  same  as  Mr.  Rusk  now  is. 

Senator  Ferguson.  You  took  it  up  with  General  Marshall.  Was  he 
then  Secretary  of  State  ? 

Mr.  Cooke.  He  was  Secretary  of  State.  The  Secretary  of  Navy  was 
there,  the  Chief  of  Naval  Operations,  and  General  Marshall,  Secretary 
Marshall,  and  Mr.  Vincent. 

Senator  Ferguson.  Will  you  tell  us  about  the  conversation  you 
had? 

Mr.  Cooke.  Yes.  I  was  of  the  view  that  we  should  take  it  out  there 
and  dump  it  and  the  Nationalists  come  and  get  it.  They  were  desper- 
ately short  of  ammunition  then.  I  considered  it  would  be  good  for 
them  to  have  it.  Furthermore,  I  didn't  think  it  was  very  practicable 
to  dispose  of  it  in  any  other  way.  In  the  discussion  that  ensued  Mr. 
Vincent  opposed  that. 

Senator  Ferguson.  What  did  he  say  ? 

Mr.  Cooke.  He  just  said  we  ought  to  figure  out  a  way  to  destroy  it. 

Senator  Ferguson.  And  not  give  it  to  the  Nationalists  ? 

Mr.  Cooke.  That  is  right.  General  Marshall  recognized  the 
problem  and  said  he  considered  it  was  a  very  difficult  problem  to  de- 
stroy it,  and  he  approved  my  recommendation  on  it,  which  was  carried 
out. 

Senator  Ferguson.  That  was  carried  out  ? 

Mr.  Cooke.  Actually  we  designated  a  place  there  where  we  were 
going  to  take  it,  and  we  told  them  we  were  going  to  put  it  tliore.  We 
didn't  tell  them  we  were  going  to  give  it  to  them,  but  we  were  putting 
it  in  this  place,  and  they  did  come  and  get  it,  and  of  course  they  did 
use  it. 

Mr.  Morris.  Wliat  was  the  date  of  that  ? 

Mr.  Cooke.  That  was  in  February  1947. 

Mr.  Morris.  Where  did  that  conference  take  place  ? 

Mr.  Cooke.  In  the  State  Department. 

Senator  Ferguson.  Did  Mr.  Vincent  assign  any  reason  for  not  giv- 
ing it  to  the  Chinese  Nationalists  in  the  way  you  proposed  ? 

Mr.  Cooke.  He  just  indicated  it  was  undesirable  to  do  so. 


1500  INSTITUTE    OF   PACIFIC   RELATIONS 

Senator  Ferguson.  Did  anybody  else  in  the  State  Departme^it  dis- 
cuss thi